Electric slide: A wave of price increases are expected to support growth in 2018-19

The Electricity Supply industry was liberalised in 1999. The market is regulated by Ofgem in Britain and by NIAUR in Northern Ireland. The volume of electricity consumed has decreased over recent years, as industrial production faltered and high energy prices encouraged many households to invest in more efficient insulation in order to reduce their energy bills. Total consumption is expected to remain subdued over 2018, exacerbated by price increases implemented by operators. The industry is expected to contract slightly, at compound annual rate of 0.4% over the five years through 2018-19, taking its revenue to a total of £32.7 billion, including growth of 0.6% in the current year, although this does hide some volatility...read more.

Industry Statistics & Market Size
Revenue
£32.7bn
Annual Growth 14-19
-0.4%
Forecast Growth 19-24
Profit
Employment
4,299
Businesses
42

Industry Threats & Opportunities

  • Operators have had to endure tight profit margins as smaller firms entered the market
  • One key trend over the past five years has been the emergence of independent suppliers
  • Meters offer suppliers the opportunity to make large cost savings once the roll-out is complete
  • Industry Report - Industry Locations Chapter

    Electricity consumption can be used as a proxy to show the proportionate locations of where electricity is retailed. Unsurprisingly, consumption levels are closely aligned to the spread of population. This is no surprise since households are the largest end users of electricity. Additionally, areas of high population density often have a larger number of commercial customers.London and the South EastLondon and the South East are the regions with the highest levels of electricity consumption. This is no surprise considering that these two regions are the most populous in the United Kingdom. The...purchase to read more.

    Additional Insights for the Electricity Supply Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Electricity Supply Industry are

  • Ensuring pricing policy is appropriate
  • Ability to effectively manage risk
  • Must have licence
  • IBISWorld analysts also discuss how external factors such as Total electricity consumption and Industrial production index in the Electricity Supply industry impact industry performance..

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    What's in this report

    What is the Electricity Supply Industry?

    Operators in this industry purchase electricity from generators and sell it to households and businesses.

    Industry Products
  • Electricity retailing
  • Industry Activities
  • Selling electricity to end users
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total electricity consumption
  • Industrial production index
  • Real household disposable income
  • Total use of renewable and waste energy sources
  • EU carbon price

  • Current Performance
  • Price fluctuations
  • Power switch
  • Profit trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Monitoring usage
  • Electricity trade
  • Green energy
  • Table: Electricity Supply Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Electricity Supply Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Bread & Bakery Goods Production
  • Paper & Paperboard Manufacturing
  • Supermarkets
  • Full-Service Restaurants

  • Key Selling Industries
  • Electricity Distribution
  • Electricity Production
  • Electricity Transmission

  • Products & Services
  • Electricity retailing
  • Other
  • Chart: Electricity Supply Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Manufacturing industries
  • Commercial premises
  • Other consumers
  • Chart: Major Market Segmentation for the Electricity Supply Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesThe industry’s costs are dominated by wholesale purchases of electricity from generators that are then sold to end users. These costs have increased in absolute terms because of higher fuel prices and the government’s attempts to reduce carbon and increase the prominence of renewable energies. Generating electricity from renewable sources is more expensive and the added cost of doing so is generally passed on to electricity retailers. The purchasing of electricity from wholesale markets accounts for approximately 36.3% of industry revenue.NetworkWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Electricity Supply

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Electricity Supply Industry

  • Industry Globalization
    EDF Energy Holdings Ltd, SSE plc, RWE Generation UK Holdings plc, Centrica plc, E.ON UK plc, Scottish Power UK plc,
  • Table: EDF Energy Holdings Ltd - financial performance
  • Table: SSE plc - financial performance
  • Table: RWE Generation UK Holdings plc - financial performance
  • Table: Centrica plc - financial performance
  • Table: E.ON UK plc - financial performance
  • Table: Scottish Power UK plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Electricity Supply Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Electricity Supply 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
    Dual Fuel
  • A contract where a customer purchases gas and electricity from the same supplier.
  • Niaur
  • Northern Ireland Authority for Utility Regulation, the government regulator for the gas and electricity markets in Ireland.
  • Ofgem
  • Office of Gas and Electricity Markets, the government regulator for gas and electricity markets in Great Britain.
  • Smart Meter
  • A meter that records users' consumption and then transmits the information to the utility supplier at regular intervals.
  • Transmission Charge
  • The price that electricity retailers pay to use the transmission network.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Electricity Supply 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 Supply:
    • 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 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 Supply 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 Supply, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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