Lacking spark: Declining wholesale electricity prices have constrained industry revenue

The Electricity Retailing in New Zealand market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.


Industry Analysis & Industry Trends

Operators in the Electricity Retailing industry have faced mixed conditions over the past five years. A decline in wholesale electricity prices has limited industry revenue growth, but supported increased profitability over the period. Meanwhile, greater awareness of electricity consumption by consumers and businesses, and the increased uptake of home insulation and household solar panels have weakened per capita demand for centrally-generated electricity. Overall, industry revenue is expected to increase at an annualised 2.4% over the five years through 2017-18, to reach $6.5 billion. This includes expected growth of 1.6% in the current year, due to weak growth in electricity demand...

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Industry Report - Industry Investment Chapter

The Electricity Retailing industry has high capital intensity. In 2017-18, for every dollar spent on wages, $0.58 is expected to be invested in capital. Although capital intensity is high, both wages and depreciation are minimal industry costs, accounting for 3.0% of industry revenue combined. Purchase costs and electricity transmission and distribution charges account for most of the industry’s costs.

The industry requires labour largely for sales and account management. These staff generally work in call centres, liasing with potential and existing clients. The industry’s capital investment includes telecommunication and office equipment.


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Additional Insights for the Electricity Retailing Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Electricity Retailing Industry are

  • Ability to effectively manage risk
  • Ability to alter goods and services produced in favour of market conditions
  • Ability to allocate product/service to area of greatest need
  • IBISWorld analysts also discuss how external factors such as Electricity service price and Demand from electricity distribution in the Electricity Retailing industry impact industry performance..

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    New Zealand Special Report

    Industry Products

    What is the Electricity Retailing in New Zealand Industry?

    Industry operators purchase electricity on the wholesale electricity spot market and onsell it to consumers and businesses.

    Industry Products
    Hydro electricity
    Thermal electricity
    Geothermal electricity
    All other electricity
    Industry Activities
    Electricity retailing
    Electricity market operation

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Electricity service price
  • Demand from electricity distribution
  • Net energy consumption
  • Public concerns over environmental issues

  • Current Performance
  • Regulatory changes
  • Industry structure
  • Profit margins
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry participation
  • Electricity consumption
  • Tiwai Point Aluminium Smelter
  • Table: Electricity Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Electricity Retailing Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Consumers in New Zealand

  • Key Selling Industries
  • Electricity Transmission and Distribution in New Zealand
  • Fossil Fuel Electricity Generation in New Zealand
  • Geothermal, Wind and Other Electricity Generation in New Zealand
  • Hydro-Electricity Generation in New Zealand

  • Products & Services
  • Hydro electricity
  • Geothermal electricity
  • Thermal electricity
  • All other electricity
  • Chart: Electricity Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Industrial users
  • Households
  • Commercial users
  • Agricultural/Forestry/Fishing users
  • Chart: Major Market Segmentation for the Electricity Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Electricity Retailing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Electricity Retailing Industry

  • Industry Globalization
    Major Companies
    Contact Energy LimitedGenesis Energy LimitedMeridian Energy LimitedMercury NZ LimitedTrustPower Limited
  • Table: Contact Energy Limited - financial performance
  • Table: Genesis Energy Limited - financial performance
  • Table: Meridian Energy Limited - financial performance
  • Table: Mercury NZ Limited - financial performance
  • Table: TrustPower Limited - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Electricity Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Electricity Retailing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
  • Stands for earnings before interest, tax, depreciation and amortisation, and fair value adjustments, and is commonly used in the electricity industry as a measure of profit.
  • Gentailer
  • The term refers to generator-retailers, vertically integrated energy companies involved in electricity generation and retailing.
  • Installation Control Points (Icps)
  • ICPs refer to the installation control points managed by an electricity retailer and can be used as a measure of market share.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Electricity Retailing in New Zealand:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Electricity Retailing in New Zealand market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Electricity Retailing in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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