Electricity Retailing in New Zealand - Industry Market Research Report

Off the grid: Strong competition and falling electricity prices are set to cause revenue declines

Electricity Retailing in New Zealand

Businesses in the Electricity Retailing industry have faced mixed operating conditions over the past five years. Greater regulatory scrutiny has threatened larger firms, with volatile wholesale prices and greater competition placing downward pressure on profit over the period. Greater awareness of electricity consumption among consumers and businesses, and increased uptake of home insulation and household solar panels have weakened per-capita demand for centrally generated electricity. Overall, industry revenue is expected to rise at an annualised 0.3% over the five years through 2022-23, to $7.9 billion. This includes an anticipated increase of 3.6% in the current year, in line with rising wholesale prices and growing net energy consumption.

Industry operators purchase electricity on the wholesale electricity spot market and onsell it to consumers and businesses.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.