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

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Growth in transport network costs and the effect of carbon pricing have forced industry firms to pass price increases to customers through bills. For this reason, industry research firm IBISWorld has updated its report on the Electricity Retailing industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

The results of the Renewable Energy Target are difficult to forecast, and could have either a positive or negative effect on the industry.

Operators in the Electricity Retailing industry in Australia have pushed through an increasingly challenging environment over the past five years. The industry facilitates the supply of electricity from generators to end users through electricity transport networks. According to IBISWorld industry analyst Ryan Kerin, “by purchasing energy from wholesale markets, industry operators manage price volatility for end users.” Several industry operators are also active in power generation industries. The industry's revenue growth is contingent on growing demand from major markets. Headline revenue growth also reflects the industry's ability to pass on increases in input costs from other areas of the electricity sector. This has been apparent in the past five years, where growth in transport network costs and the effect of carbon pricing have been passed through to retail bills. Industry revenue has grown to a forecast $69.1 billion in 2014-15, equating to compound annual growth of 2.1% over the past five years. The repeal of the carbon tax in 2014-15 is expected to lower industry revenue by 9.7% during the year. Government competition authorities will closely scrutinise the industry to ensure savings that resulted from the repeal of the tax are passed on to electricity end users.

Over the five years through 2014-15, per capita growth in energy demand is expected to have declined, putting pressure on retailers. “This is due to a range of factors, including the decline of energy-intensive industries (particularly in the Manufacturing division) to incentives for households to invest in energy-efficiency measures,” says Kerin. Increased installation of household solar panels has also reduced industry demand.

The industry exhibits a low level of market share concentration. Major players include AGL Energy Limited, EnergyAustralia Holdings Limited and Origin Energy Limited. Mixed operating conditions are expected to continue in the five years through 2019-20. Shifting regulation and policy for the Electricity Retailing industry and for related industries will create an uncertain operating environment. The Renewable Energy Target may be weakened, the results of which are difficult to forecast, and could have a positive or a negative effect on industry revenue. Further, a federal election in 2017 could result in the resumption of carbon pricing. IBISWorld forecasts are based on a business-as-usual case, with no changes to either policy over the next five years.

For more information, visit IBISWorld’s Electricity Retailing industry in Australia report page.

Operators in this industry sell electricity via power distribution systems operated by others. The industry also includes operators that primarily provide services to the electricity market, facilitating the matching of supply and demand for electricity.

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IBISWorld industry Report Key Topics

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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