Electricity Distribution in Australia - Industry Market Research Report
Electricity Distribution in Australia
Electricity distribution networks form the last link in electricity transport to homes and businesses. Since these regional monopolies provide such a vital service, the Australian Energy Regulator (AER) determines their revenue allowances, returns on investment and capital expenditure in five-year blocks. Until 2015, regulators let distribution networks earn higher revenue, prompting significant investment in expanding their network assets. Since then, revenue allowances have been slashed. A low interest rate environment cut borrowing costs, meaning distributors could recoup their investments at a lower rate of return than previously. To reinforce this, the AER mandated a new Rate of Return Instrument in 2018, squeezing profit margins. Investment is now being channelled to maintaining or replacing existing infrastructure, with revenue falling 2.4% over the past five years, including 1.8% in 2022-23, to $14.8 billion.
Industry companies operate low-voltage electricity distribution systems that deliver electricity to consumers, including lines, poles, meters and wires. Industry firms transport electricity that is sourced from upstream high-voltage transmissions networks.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
TABLE OF CONTENTS
ABOUT THIS INDUSTRY
Industry Definition
Main Activities
Similar Industries
Additional Resources
INDUSTRY AT A GLANCE
INDUSTRY PERFORMANCE
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
PRODUCTS & MARKETS
Supply Chain
Products & Services
Demand Determinants
Major Markets
International Trade
Business Locations
COMPETITIVE LANDSCAPE
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalization
MAJOR COMPANIES
OPERATING CONDITIONS
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
KEY STATISTICS
Industry Data
Annual Change
Key Ratios
JARGON & GLOSSARY
Research Assistance
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