$14.8bn
$X.Xbn
32,767
15
$X.Xbn
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. The AER mandated a new Rate of Return Instrument in December 2022. The rate of return represents a climb over that implemented in 2018, and could benefit profit margins in the coming years despite recent falls. Investment is now being channelled to maintaining or replacing existing infrastructure, with revenue falling at an annualised 2.4% over the five years through 2022-23, including a drop of 1.8% in 2022-23, to $14.8 billion. However, these regulatory changes are likely to encourage revenue recovery.
Industry revenue has declined at a CAGR of 2.4 % over the past five years, to reach an estimated $14.8bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2023 | Revenue ($m)
2023 |
---|---|---|
Energy Queensland | 3,730.0 | |
Ausgrid | 2,650.0 | |
Endeavour Energy | 1,550.0 |
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Industry revenue is measured across several distinct product and services lines, including Electricity distribution, Streetlight operation and Smart meter installation. Electricity distribution is the largest segment of the Electricity Distribution in Australia.
Electricity distribution forms a key link in the electricity supply chain
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.
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ANZSIC 2630 - Electricity Distribution in Australia
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Revenue allowances have fallen since 2015. Regulators have scaled back network expansions, with distribution firms replacing or maintaining their existing assets.
Learn about an industry's products and services, markets and trends in international trade.
Smart meter rollout has sped up in non-Victorian states and territories. The rollout has aimed to capture more accurate data on electricity usage in these areas.
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Victoria has five distribution providers, which is the most in Australia. The state’s network assets were privatised in the 1990s.
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Distribution networks are difficult to substitute for consumers. Electricity distribution networks convert high-voltage transmission into more user-friendly forms of electric...
Learn about the performance of the top companies in the industry.
Distribution companies are turning to microgrids. Microgrids support resilience in rural networks and can also include renewable energy and battery energy storage.
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Regulators determine revenue allowances for distribution companies. Having revenue allowances encourages distributors to ensure that they manage their assets efficiently.
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Borrowing costs have been shifting with the cash rate. Regulators have updated the rate of return for distribution providers on the back of these changes.
Including values and annual change:
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Key data sources in Australia include:
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
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The market size of the Electricity Distribution industry in Australia is $14.8bn in 2024.
There are 15 businesses in the Electricity Distribution industry in Australia, which has declined at a CAGR of 0.0 % between 2018 and 2023.
The market size of the Electricity Distribution industry in Australia has been declining at a CAGR of 2.4 % between 2018 and 2023.
Over the next five years, the Electricity Distribution industry in Australia is expected to grow.
The biggest companies operating in the Electricity Distribution market in Australia are Energy Queensland, Ausgrid and Endeavour Energy
Electricity distribution and are part of the Electricity Distribution industry.
The company holding the most market share in Australia is Energy Queensland.
The level of competition is low and increasing in the Electricity Distribution industry in Australia.