Electricity retailing

Electricity retailing is like going to your favorite candy store to buy your favorite candies.
Similarly, electricity is like the candy we use to power our homes and businesses. The company that sells the electricity is called an electricity retailer.

To explain how electricity retailing works, we need to understand three important parts: generation, transmission, and distribution.

Generation:
Electricity is created at power plants and generated from various sources, including coal, natural gas, hydroelectric dams, wind turbines, and solar panels.

Transmission:
After electricity is generated, it needs to travel to your home or business through a complex network of high-voltage transmission lines, called the grid. This is like a highway network for electricity that connects different cities and towns.

Distribution:
Once the electricity reaches its destination through the grid, it is distributed to homes and businesses through lower voltage power lines, like smaller streets that branch out from highways.

Electricity retailers buy electricity from power generators and sell it to consumers at a price. This price can either be fixed or variable and is based on various factors like supply and demand, electricity generation cost, government regulations, and delivery charges.

Consumers can choose their electricity retailer based on their preference, budget or environmental values. Retailers often offer different plans, discounts or incentives to attract customers.

So, electricity retailing is like going to a candy store, choosing your favorite candy, and buying it at a certain price. Similarly, electricity retailers buy electricity from power generators and sell it to consumers, like you and me, who need it to power our homes and businesses.