There are three main components of the energy supply chain:

Generation

Electricity generators and gas producers produce energy. This energy is then sold on the wholesale energy market. The price for wholesale energy is not regulated and the price can vary at different times.

Networks

Energy is then transported along the networks to homes and businesses. The networks are the poles and wires or the pipes through which the energy is transported.

Each fuel type has only one business and that business owns the network which transports the energy to houses and businesses. This is because significant capital investment is needed to build these networks. Multiple poles and wires or pipelines servicing one home would be inefficient and costly to consumers.

Prices charged by networks are regulated by the Australian Energy Regulator External link.

Retail

Energy retailers buy energy from generators and producers, and pay to have it delivered to homes and businesses.

The price you pay your energy retailer for electricity and gas includes the costs of wholesale energy and delivery.

Any price you choose can still be affected by changes in prices for wholesale energy or delivery by networks.