Market & Customer Insight (MCi) Ltd

Press Release: UK Gas Supply & Distribution Business Development Report

Released: March 2011
Published by Market & Customer Insight (MCi)

After researching the UK gas supply & distribution business development and taking into account various other factors the following conclusions can be drawn from this MBD report:

Market Review 2005/06-2009/10:

Total capital expenditure in the gas industry by GDNs has increased from £813 million in 2005/06 to an estimated £1101.9 million in 2009/10, representing an overall increase of 36%. Much of the growth during the review period is a reflection of the significant re-organisation of the regulatory framework and the role of replacement investment in the industry in recent years.

Market Forecast 2010/11-2013/14:

Total capital expenditure by the eight GDNs is anticipated to fluctuate somewhat between 2009/10 and 2013/14. Declines are projected for the majority of years, except for growth of 4% anticipated for 2011/12.

Final proposals for the GDPCR suggest that capital expenditure increased by 4% in 2008/09. However this is expected to be negated by year on year declines to a forecast low of £301.5 million in 2010/11. By 2012/13, capital expenditure spending is expected to total £309.1 million (at 2005/06 prices), equivalent to growth of 20% compared with 2006/07. Growth is expected to reflect the need for investment in the gas network, in order to cope with the greater use of LNG and gas from Europe. Investment is also required to meet the demands for the increase entry capacity to the gas pipeline system, where the new pipelines and LNG facilities are to be built. The proportional importance of capital spending to total capital expenditure and repex by the eight GDNs is forecast to decline from a peak of 38.7 % in 2007/08 to 30.7% in 2012/13.

Note to Editors:

MCi specialises in business to business market research. The range of reports and industries in which we operate in is constantly expanding (our portfolio comprises of more that 140 titles). All our reports are written by in-house market consultants.

Click here for full details of the UK Gas Supply & Distribution Business Research Report

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