Energy Supply explained

Energy supply explained: from barrels power plants, North Sea gas fields, Russia and Middle East to your home

In the UK, supplying energy to your home involves three key elements: making electricity through generation, transporting gas and electricity, and selling it to the customer. Energy companies either work in one of these different areas or operate in all three (electricity generation, networks and energy supply).

British energy suppliers have operated in a liberalised and competitive market since the 1990s. Private companies make sure we have the energy supply that we need and customers can choose which companies supply their energy. The energy market is regulated by the Gas and Electricity Markets Authority, operating through the Office of Gas and Electricity Markets (OFGEM).

Gas supply explained

Check out our Whiteboard Friday video “Gas Bill – Who you pay and what you pay for?” by our , Guy Thompson

Electricity supply explained


Check out our Whiteboard Friday video “Electricity Bill – Who you pay and what you pay for?” by our , Guy Thompson

Gas

Producer and Terminal Operators

Gas producers operates offshore facilities from hundreds of fields beneath the sea around Britain.

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Delivery

Gas is delivered to reception points or brought ashore from interconnector pipelines or liquefied natural gas terminals.

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Distribution

From a high pressure transmission system, gas is then distributed through low pressure networks of pipes to UK homes. There are 8 main gas distribution networks. The smaller networks are owned and operated by Independent Gas Transporters (IGTs)

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Retail

Your supplier pays the network for transporting it

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Your home

You buy your Gas and electricity from your supplier

Electricity

Generation

Generators produce electricity which is sold on the energy market and then used in UK homes.

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Transmission

Generated electricity flows along high voltage wires across the transmission network.

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Distribution

14 licensed distribution networks operators (DNOs)carry electricity from transmission systems to UK homes. Each DNO is responsible for a distribution services area.

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Retail

Suppliers buy electricity from the wholesale market and pay the DNOs for transporting it along their Network

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Your home

You buy your Gas and electricity from your supplier