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AU ANZSIC D2630 | Industry Report

Electricity Distribution in Australia Industry Data and Analysis

CF
Callum Francis
Analyst Melbourne, Australia July 2025

Electricity distribution networks form the last link in electricity transport to homes and businesses. Since these regional monopolies provide such a vital service, the Australian Energy Regulator (AER) determines their revenue allowances, returns on investment and capital expenditure in five-year blocks. On top of five-year revenue allowances, the AER also makes allowance for returns on capital with the Rate of Return Instrument. In 2022, the updated Rate of Return Instrument sought to accommodate surging interest rates, which protected profit margins despite weak revenue growth. Nonetheless, revenue is expected to fall at an annualised 3.1% over the five years through 2024-25, to $13.2 billion. In 2024-25, revenue is anticipated to remain steady. While most distributors will receive higher nominal revenue allowances, real industry revenue will be stable due to the offsetting impacts of inflation.

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What's included in this industry analysis

IBISWorld's research coverage on the Electricity Distribution industry in Australia includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released July 2025.

About this industry

What's this industry report about?

The Electricity Distribution industry in Australia operates under the ANZSIC industry code D2630. Industry companies operate low-voltage electricity distribution systems that deliver electricity to consumers, including lines, poles, meters and wires. Industry firms transport electricity that is sourced from upstream high-voltage transmissions networks. Related terms covered in the Electricity Distribution industry in Australia include electricity distribution system, substation, national electricity market (nem), australian energy regulator (aer) and regulated asset base (rab).

What's included in this industry?

Products and services covered in Electricity Distribution industry in Australia include Electricity distribution, Streetlight operation and Smart meter installation.

What companies are included in this industry?

Companies covered in the Electricity Distribution industry in Australia include Energy Queensland, Essential Energy and Ausgrid.

Performance

What's included in the Performance chapter?

The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Electricity Distribution industry in Australia.

Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.

Products & Markets

What's included in the Products and Markets chapter?

The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Electricity Distribution industry in Australia.

Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.

Geographic Breakdown

What's included in the Geographic Breakdown chapter?

The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Electricity Distribution industry in Australia.

Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.

Competitive Forces

What's included in the Competitive Forces chapter?

The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Electricity Distribution industry in Australia. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.

Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.

Companies

What's included in the Companies chapter?

The Companies chapter covers Key Takeaways, Market Share and Companies in the Electricity Distribution industry in Australia. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.

Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.

External Environment

What's included in the External Environment chapter?

The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Electricity Distribution industry in Australia. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.

Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.

Financial Benchmarks

What's included in the Financial Benchmarks chapter?

The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Electricity Distribution industry in Australia. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.

Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.

Industry Data

What's included in the Industry Data chapter?

The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Electricity Distribution industry in Australia.

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Frequently Asked Questions

What is the market size of the Electricity Distribution industry in Australia in 2026?

The market size of the Electricity Distribution industry in Australia is $13.2bn in 2026.

How many businesses are there in the Electricity Distribution industry in Australia in 2025?

There are 15 businesses in the Electricity Distribution industry in Australia, which has declined at a CAGR of 0.0 % between 2020 and 2025.

How may import tariffs affect the Electricity Distribution industry in Australia?

The Electricity Distribution industry in Australia is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Electricity Distribution industry in Australia?

The Electricity Distribution industry in Australia is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Electricity Distribution industry in Australia grown or declined over the past 5 years?

The market size of the Electricity Distribution industry in Australia has been declining at a CAGR of 3.1 % between 2020 and 2025.

What is the forecast growth of the Electricity Distribution industry in Australia over the next 5 years?

Over the next five years, the Electricity Distribution industry in Australia is expected to grow.

What are the biggest companies in the Electricity Distribution industry in Australia?

The biggest companies operating in the Electricity Distribution industry in Australia are Energy Queensland, Essential Energy and Ausgrid

What does the Electricity Distribution industry in Australia include?

Electricity distribution and Streetlight operation are part of the Electricity Distribution industry in Australia.

Which companies have the highest market share in the Electricity Distribution industry in Australia?

The company holding the most market share in the Electricity Distribution industry in Australia is Energy Queensland.

How competitive is the Electricity Distribution industry in Australia?

The level of competition is very low and steady in the Electricity Distribution industry in Australia.

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