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 Energy Expert, Guy Thompson
Electricity supply explained
Check out our Whiteboard Friday video “Electricity Bill – Who you pay and what you pay for?” by our Energy Expert, Guy Thompson
Gas
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Producer and Terminal OperatorsGas producers operates offshore facilities from hundreds of fields beneath the sea around Britain.  |
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DeliveryGas is delivered to reception points or brought ashore from interconnector pipelines or liquefied natural gas terminals. |
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DistributionFrom 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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RetailYour supplier pays the network for transporting it |
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Your homeYou buy your Gas and electricity from your supplier |
Electricity
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GenerationGenerators produce electricity which is sold on the energy market and then used in UK homes. |
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TransmissionGenerated electricity flows along high voltage wires across the transmission network. |
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Distribution14 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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RetailSuppliers buy electricity from the wholesale market and pay the DNOs for transporting it along their Network |
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Your homeYou buy your Gas and electricity from your supplier |