Reduced transmission: Declining per capita electricity use has constrained revenue growth

The Electricity Transmission and Distribution industry comprises one transmission company, Transpower, and 29 lines companies, or distributors, which deliver power to end users across New Zealand. Industry players link electricity generation companies with downstream retailers and end users. Most players own and operate substantial assets, including power lines, cables, substations and other infrastructure. Transpower is a state-owned enterprise and is the system operator of the national electricity transmission grid that balances real-time fluctuations in supply and demand to ensure a consistent flow of electricity...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 14-19
0.7%
Forecast Growth 19-24
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Profit
x.x%lock
Employment
5,178
Businesses
30
Market Share of Companies

Industry Threats & Opportunities

  • The Commerce Commission monitors the pricing regimes of electricity distributors and Transpower
  • Per capita electricity usage has declined, as consumers have become more environmentally conscious
  • Distribution and transmission prices are forecast to grow over the 2015-2020 regulatory period

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    Industry Report - Industry Investment Chapter

    The Electricity Transmission and Distribution industry is highly capital-intensive. In 2017-18, for every dollar spent as wages, an estimated $1.56 is invested in capital. Industry operators own substantial fixed assets, including power lines, cables, substations and other infrastructure. Maintenance, repair, installation and other ongoing costs can be substantial. These costs are often capitalised and depreciated over a fixed time period, contributing to a sizeable portion of industry costs. Capital intensity has remained high over the past five years, due to ongoing infrastructure upgrades...purchase to read more.

    Additional Insights for the Electricity Transmission and Distribution Industry

    IBISWorld has determined the most important Key Success Factors for the Electricity Transmission and Distribution are:

  • Superior financial management and debt management
  • Economies of scale
  • Ability to negotiate successfully with regulator

    • IBISWorld analysts also discuss how external factors such as Demand from electricity retailing and Net energy consumption in the Electricity Transmission and Distribution industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Electricity Transmission and Distribution in New Zealand Industry?

    Industry players deliver electricity to final users. Players operate low-voltage distribution systems, which include lines, meters, poles and wires. Players also operate high-voltage transmission systems that use power lines and transformer stations.

    Industry Products
  • Electricity distribution
  • Electricity transmission
    • Industry Activities
  • Electricity transmission
  • Electricity distribution
  • Electricity substation 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
  • Demand from electricity retailing
  • Net energy consumption
  • Electricity service price
  • Public concerns over environmental issues

    • Current Performance
  • Profitability and participation
  • Electricity generation trends
  • Consumption trends
  • Transmission and distribution pricing
  • Chart: Revenue Growth

    • Industry Outlook
  • Industry participation
  • Industrial demand
  • Transmission and distribution pricing
  • Electricity retailing trends
  • Table: Electricity Transmission and Distribution Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Electricity Transmission and Distribution Industry Lifecycle vs The Economy

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Pulp, Paper and Paperboard Manufacturing in New Zealand
  • Electricity Retailing in New Zealand
  • Consumers in New Zealand

    • Key Selling Industries
  • Engineering Consulting in New Zealand
  • Heavy Industry and Other Non-Building Construction in New Zealand
  • Heavy Machinery and Scaffolding Rental and Hiring in New Zealand

    • Products & Services
  • Electricity distribution
  • Electricity transmission
  • Chart: Electricity Transmission and Distribution Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Industrial companies
  • Households
  • Businesses
  • Agriculture, forestry and fishing companies
  • Chart: Major Market Segmentation for the Electricity Transmission and Distribution 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 Transmission and Distribution

    • Basis of Competition
  • Internal competition
  • External competition

    • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Electricity Transmission and Distribution Industry

    • Industry Globalization

    Major Companies

    Transpower New Zealand Limited, Vector Limited, Powerco Limited,
  • Table: Transpower New Zealand Limited - financial performance
  • Table: Vector Limited - financial performance
  • Table: Powerco Limited - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Electricity Transmission and Distribution 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 Transmission and Distribution Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Baseload Power
  • Electricity generation plants that meet minimum demand from the wholesale market.
    • Centrally Generated Electricity
  • Electricity that is generated at large-scale generation facilities and is then distributed along the national grid.
    • Geothermal
  • Energy that comes from the heat below the earth's surface.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Electricity Transmission and Distribution in New Zealand market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Transmission and Distribution 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 Transmission and Distribution 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 Transmission and Distribution 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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