A new spark: Transmission charges may be affected by investment in renewable generators

The Electricity Transmission industry is responsible for carrying electricity from power stations to the low-voltage distribution network, which delivers the electricity to end users. The industry is a highly regulated natural monopoly. Industry revenue is forecast to grow at a compound annual rate of 3.2% over the five years through 2018-19 as a result of mounting transmission costs and rising charges being levied on grid users. Higher transmission charges relate to the significant amount of capital investment sunk into the transmission grid in order to accommodate new generation plants and to replace ageing systems. Nevertheless, revenue fell by 7.1% in 2017-18 due to a reduction in the expenditure allowances set by Ofgem...read more.

Industry Statistics & Market Size
Revenue
£5.1bn
Annual Growth 14-19
3.2%
Forecast Growth 19-24
Profit
Employment
4,430
Businesses
5

Industry Threats & Opportunities

  • Ofgem tightening revenue allowances is setto reduce energy bills but constrain growth
  • The industry encompasses transmission owners, transmission operators and interconnectors
  • A plan to introduce a competitive tendering system may be implemented to increase efficiency
  • Industry Report - Industry Analysis Chapter

    The Electricity Transmission industry’s operators own, run and maintain high-voltage networks. These networks are responsible for carrying electricity from power stations to the low-voltage distribution networks, which then deliver the electricity to end users. Transmission systems generally include overhead lines, underground cables and substations. They connect generators and interconnectors to the distribution system. Therefore, transmission is the second phase in the electricity delivery process to consumers. Following generation, the other two main phases are distribution and trade.The industry has recorded strong growth over much of the past five-year period. In ...purchase to read more.

    Additional Insights for the Electricity Transmission Industry

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

  • Ensuring pricing policy is appropriate
  • Effective cost controls
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Demand from electricity and telecommunications infrastructure construction and Total electricity consumption in the Electricity Transmission industry impact industry performance..

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    What's in this report

    What is the Electricity Transmission Industry?

    This industry owns, operates and maintains a network of high-voltage wires that carry electricity over long distances. The electricity transmission system connects electricity generators to the low-voltage distribution network that carries electricity to end users.

    Industry Products
  • Electricity transmission
  • Industry Activities
  • Transmitting electricity over a high-voltage network
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from electricity and telecommunications infrastructure construction
  • Total electricity consumption
  • Downstream demand from manufacturing
  • Number of households

  • Current Performance
  • Regulated growth
  • Transmission monopoly
  • New connections
  • Chart: Revenue Growth

  • Industry Outlook
  • Renewable generation
  • European electricity
  • Table: Electricity Transmission Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Electricity Production
  • Electricity Supply

  • Key Selling Industries
  • Consultant Engineering Services
  • Electricity & Telecommunications Infrastructure Construction
  • Metal Structure Manufacturing

  • Products & Services
  • Electricity transmission
  • Other
  • Chart: Electricity Transmission Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Commercial and public administration premises
  • Manufacturing and industrial premises
  • Other consumers
  • Chart: Major Market Segmentation for the Electricity Transmission Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesDepreciationWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Electricity Transmission

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Electricity Transmission Industry

  • Industry Globalization
    National Grid Electricity Transmission plc, Scottish Hydro Electric Transmission plc, SP Transmission plc,
  • Table: National Grid Electricity Transmission plc - financial performance
  • Table: Scottish Hydro Electric Transmission plc - financial performance
  • Table: SP Transmission plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Electricity Transmission 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 Transmission 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
    Niaur
  • Stands for the Northern Ireland Authority for Utility Regulation.
  • Ofgem
  • Stands for the Office of Gas and Electricity Markets.
  • Riio
  • Stands for revenue = incentives + innovation + outputs. The most recent regulatory framework, which became effective on 1 April 2013 and will last for eight years.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Electricity Transmission market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 Transmission:
    • 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 Transmission 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 Transmission, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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