Industry Analysis & Industry Trends
Companies in the Gas Supply industry purchase gas from the wholesale market and sell it to end users via the distribution network. Gas is used mainly for heating, but also to produce electricity. Wholesale prices are closely linked to trends in global markets because the United Kingdom is increasingly dependent on imported gas, as domestic supplies in the North Sea and the East Irish Sea dwindle. The industry's performance is also affected by weather trends. Colder weather increases demand for gas for heating purposes, while warmer weather reduces demand for heating, which weakens industry revenue. Industry revenue is expected to decrease at a compound annual rate of 0.4% over the five years through 2016-17 to reach £14.3 billion... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Gas Supply industry is in the mature phase of its life cycle. However, consumption has been falling since the onset of the recession. Revenue has been somewhat shielded from falling sales volumes by the increasing retail price of gas, arising from the volatile and upward trending wholesale price of gas. As a result, industry value added is expected to grow at a compound annual rate of 1.1% over the 10 years through 2021-22. GDP growth is expected to be 2.3% per year over the same period.
The industry's products and major players are well established, while sales volumes are likely to be limited over the next five years due to energy conservation measures. Developments surrounding fracking are likely to have a large bearing on long-term revenue trends. If .. purchase to read more