Industry Analysis & Industry Trends
Revenue for the Electricity Distribution industry is expected to expand at a compound annual rate of 4.5% over the five years through 2015-16. Higher prices have more than offset weak volumes of electricity transported along the low-voltage distribution network. These prices reflect the investment that is necessary to bring the industry's ageing infrastructure up to date. Industry revenue is expected to increase by a further 1.6% to £6.7 billion in 2015-16. Electricity distribution businesses are regional monopolies, so their pricing is heavily regulated by the Office of Gas and Electricity Markets (Ofgem). Ofgem aims to act on behalf of consumers, while ensuring that distributors receive a fair return... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Electricity Distribution industry has a high level of market share concentration. The 15 electricity distribution licences covering the United Kingdom (14 in Great Britain and one in Northern Ireland) are held by seven firms. The four largest companies in the industry are expected to generate 76.9% of industry revenue in 2015-16 and each holds multiple distribution licences.
Concentration increased at the start of 2011-12 when one of the existing industry participants, the US firm PPL Corporation, which operates through its UK subsidiary Western Power Distribution Holdings, purchased two more electricity distribution networks, taking its total to four. That increase in concentration was the first for some years... purchase to read more