ELETROBRÁS Competition
Now Viewing ELETROBRÁS's competition in: Electric Energy Distribution
Recent Developments
Electric Power Production Continues Increase - Domestic production of electric energy continues to rise, as it has for 15 years. US electric power transmission, control, and distribution, an indicator of demand, increased 0.8 percent in April 2008 from year-earlier levels. Average annual electric production growth increased 2.6 percent in 2007 and 13 percent over five years.
Consumers Pay Higher Prices for Electricity - Consumers are paying more for electricity as prices rise. US consumer prices for electricity increased 5 percent in April 2008 from year-earlier levels. Average annual prices rose 3.9 percent in 2007 and 29 percent over five years.
Construction Spending on Power Facilities Grows Rapidly - Construction spending on power facilities, including for electric energy, is growing rapidly. US construction spending on power facilities increased during first quarter 2008 compared to year-ago levels: 32.9 percent for public sector and 26.8 percent for private sector. Rises in demand and costs contribute to spending increases.
Competitive Landscape
The electric energy industry in the US is currently in a state- and federally-sponsored transition, or Electric Restructuring. The traditional electricity industry consists of large investor-owned utilities (IOUs); municipal utilities; rural cooperatives; and government entities, like the Tennessee Valley Authority (TVA), that own the generation, transmission, and retail distribution facilities within a limited area, and serve all customers within that area as tightly regulated "natural monopolies." Under restructuring, the generation, transmission, and distribution operations are carried out by separate companies, and the owners of local distribution lines make their lines available to competitors. About half the states have adopted restructuring legislation, but only a third are actively engaged in restructuring.
Electric Energy Distribution Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US electric utilities, which includes distribution, is forecast to grow at an annual compounded rate of 4.7 percent between 2007 and 2012.
Electric Utility Growth Stabilizes
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Depends on business/industrial activity
- High fixed costs
- Risk: Slowing economy cuts use
Industries Where ELETROBRÁS Competes
- Energy & Utilities
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Electric Utilities (primary)
- Electric Power Distribution
- Electric Power Transmission
- Hydroelectric Power Generation
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Electric Utilities (primary)
