How the energy market works

Electricity usage in your home starts its journey at a power station. There are various types of power stations—some use conventional fuels to generate electricity while others employ renewable sources like solar, wind, and hydro technologies.

At the power station, once electricity is generated, it undergoes a transformation where a device called a transformer increases its voltage to a high level, enabling it to travel long distances over high-voltage power lines. When this high-voltage electricity reaches its distribution point, it passes through another transformer which reduces the voltage back down to a safe, usable level for everyday purposes.

This low-voltage electricity is then delivered by distributors to its final destinations—your homes and businesses. The entire flow is managed by three main types of organizations: Generators (who produce the electricity), Distributors (who manage its delivery), and Retailers (who handle the sale and supply to the end consumers).