Industry Analysis & Industry Trends
Electricity distribution businesses have regional monopolies, so their pricing is heavily regulated by governmental departments. These are the Office of Gas and Electricity Markets (Ofgem) in Britain, and the Northern Ireland Authority for Utility Regulation (NIAUR) in Northern Ireland. The industry is estimated to employ over 21,000 people and pay £1.1 billion in wages in 2016-17. There are seven Distribution Network Operators (DNOs) active in the industry, covering 15 distribution areas in the United Kingdom (14 in Great Britain and one in Northern Ireland), and eight Independent Distribution Network Operators (IDNOs). A number of these firms also generate electricity and some are involved in both transmitting and distributing electricity... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Electricity Distribution industry is currently in the mature stage of its life cycle. An industry's life cycle stage is often indicated by comparing its industry value-added figure to the growth rate of the overall economy. Industry value added is estimated to increase at a compound annual rate of 0.4% over the decade through 2021-22. Over the same period, the UK economy is expected to grow at a compound annual rate of 2.3%. However, the slower growth of industry value added is a result of cutting prices, rather than lower output. Industry output is actually remaining fairly stable, as distribution charges are set by industry regulators.
The fixed nature of electricity distribution networks constrains the mechanisms by which market participants can expand their operations. One.. purchase to read more