Industry Analysis & Industry Trends
The Gas Supply industry is expected to generate revenue of £21.2 billion in 2012-13, compared with £21.8 billion in 2007-08. The contraction, at 0.6% per annum, has occurred as higher gas prices have failed to offset a substantial fall in gas volumes. Gas sales volumes are expected to be about 494,580 gigawatt hours in 2012-13, compared with 591,223 gigawatt hours five years earlier. Sales volumes, which had already eased due to higher prices and measures to reduce energy consumption and greenhouse gas emissions, fell sharply in response to the financial crisis. Demand from industrial users plunged particularly steeply in 2009-10... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The industry is in decline. Its product and major players are well established and sales volumes, which have fallen over the five years through 2012-13, are expected to grow only slightly over the next five years due to energy conservation measures and the continued drift offshore of manufacturing industries.
The industry is highly concentrated, with the four largest suppliers accounting for over 80% of gas sales. The market is characterised by a large proportion of consumers who choose not to change suppliers, thus limiting opportunities for suppliers to expand their customer base. Those consumers who do change suppliers are often proactive and price sensitive, causing firms to compete on price. This keeps profit margins fine... purchase to read more