Energy Explained

How the energy market works

 

The electricity that gets used at your residence begins its way in a power station.

There are many power stations - Some generate electricity by burning different fuels and others generate renewable energy with solar, wind and hydro technologies.

Once the electricity is made, a transformer converts the low-voltage electricity to high-voltage and it leaves the power station and travels long distances via high-voltage power lines.

This high-voltage electricity is received by the distributors and networks, and goes through another transformer which makes the electricity low-voltage again, meaning it is ready to be used for every-day purposes.

After the electricity is transformed back to low-voltage, the distributors deliver it to its final destination, such as your home or business.

The organisations which help this process happen are the Generators, Distributors and Retailers.

Generators are the ones who make the electricity, the owners and operators of power stations - Renewable and non-renewable ones.

Distributors are in charge of connecting between the generators and the consumers. It is their responsibility to ensure the supply is available.

Retailers buy the electricity from the NEM (National Electricity Market) at wholesale price and sell it to customers. The retailers are responsible for customers’ connection to the network, billing and customer service.