Industry Analysis & Industry Trends
The Electricity Production industry is expected to expand at a compound annual rate of 1.6% over the five years through 2016-17. However, falling wholesale electricity prices coupled with weak demand for electricity have provided stiff resistance to growth. During the current year, industry revenue is expected to increase by 1.9% to reach £17.3 billion. IBISWorld estimates that in 2016-17, natural gas is used to generate 43.4% of total electricity produced in the United Kingdom, followed by renewables, which account for 25%, nuclear, which generates 23.2%, and coal, which accounts for the remaining 5.5%.
Electricity production represents the first phase in the process of delivering electricity to consumers, and is followed by transmission, distribution and trade... purchase to read more
Industry Report - Industry Investment Chapter
Electricity production is a capital-intensive process and the efficiency with which capital is employed has a major influence on the cost of production. In 2016-17, it is estimated that for every £1.00 that industry operators spend on capital, they spend 87p on labour. This demonstrates the importance of capital in the production of electricity. Depreciation remains a substantial part of the industry’s cost structure, even though most conventional UK power stations are relatively old and their initial capital cost has been largely written down. With the recent surge in wind farms and photovoltaic plants, depreciation began to increase rapidly in the latter part of the five-year period through 2016-17. The.. purchase to read more