The Difference Between a Supplier and a Distributor

When the electricity industry was privatised in 1991 the aim was to reduce the price of energy to customers whilst driving up standards. This involved opening up the energy supply side of the business to full competition and applying complex regulation to the distribution businesses.

Energy Supply companies
Energy Supply companies buy electricity from generation companies. They pay distribution companies such as ours to transport the electricity through the wires to your home or business. There are a number of energy supply companies which can sell electricity (and gas) to anybody anywhere in the UK. This means you can choose which energy supplier you buy from regardless of where you live.

Distribution companies (DNOs).
We are a Distribution company, We operate and maintain the electricity supply system in particular areas. Regardless of who your supplier is, it is our network that gets the power to you. There is no alternative. The regulator is very conscious of this and applies stringent performance measures on all of the distribution companies.

The regulator OFGEM controls the industry. At periodic price reviews, the price which distribution companies can charge for their services is set. This determines how much we can invest in the networks we operate to ensure we are able to meet future demand for service.

As a DNO it is our responsibility to:

• Maintain the performance and safe condition of our network.
• Restore the supply as quickly as possible should a fault occur on the network
• Operate the telephone service with relation to network enquiries and faults 
• Provide new connections to the network

The following provides details of how your electricity bill is made up:

Distribution costs are broken down as follows: