Electricity Transmission in Australia Industry Market Research Report Now Updated by IBISWorld

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With greater focus on renewable energy and year-on-year falls in electricity use, the industry is preparing for structural changes. For this reason, industry research firm IBISWorld has updated its report on the Electricity Transmission industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Electricity end use has fallen year on year over the past five years.

The Electricity Transmission industry operates the high-voltage electricity network, linking electricity generators to the distributors that operate the low-voltage electricity supply system. IBISWorld industry analyst Caroline Finch states, “electricity is most efficiently carried at high voltage but most end users need lower voltage supply, so the industry carries all interstate electricity.” The industry operates interconnectors between Tasmania, South Australia, Queensland, Victoria and New South Wales that underpin the flow of electricity in the National Electricity Market.

The industry is expected to generate revenue of $4.4 billion in 2013-14, up from $3.4 billion in 2008-09. This equates to compound annual growth of 5.2%, an expansion that reflects determinations on industry investment requirements made by regulators. The industry is highly concentrated and has regional monopoly characteristics with just one major participant in each state. According to Finch, “due to competition and electricity supply concerns, the industry is heavily regulated by either state-based regulators or the Australian Energy Regulator (AER).” Regulators oversee the reliability of systems and sanction investment to guarantee it. Industry operators are allowed a rate of return on their asset base by regulators which compensates them for their investment. The past cycle of regulatory decisions resulted in the approval of significant capital expansion to meet forecast future demand increasing industry revenue. In 2013-14, revenue is forecast to grow at a lower rate of 2.1% as the regulatory determination cycles transition. Relatively strong growth in revenue over the five years through 2013-14 signalled regulators' views that substantial investment is required to maintain and upgrade existing transmission networks and provide for new capacity. In 2013-14, the AER is entering into a new cycle of five-year determinations. Notably, end use of electricity has fallen year on year over the five years through 2013-14. It is likely that regulators will favour more moderate capital expansion plans given the changing demand situation.

The industry's market share concentration is high. In the past, the electricity sector (generation, transmission and distribution combined) was highly concentrated, with effectively only one producer/supplier operating in most states. This situation has changed rapidly over recent years, as separate power generation, transmission and distribution firms were split from single, state government-owned entities. The impact of these changes has been less marked on the Electricity Transmission industry than on generators or distributors. The industry’s major players are the Queensland Electricity Transmission Corporation, TransGrid, SP AusNet, Electricity Networks Corporation, ElectraNet and Transend Networks. For more information, visit IBISWorld’s Electricity Transmission report in Australia industry page.

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IBISWorld industry Report Key Topics

Firms in this industry operate high-voltage electric power transmission systems and control the transmission of electricity from generating plants to distribution centres or other electric utilities. The transmission system includes lines and transformer stations.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
IBISWorld
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