Where your energy comes from

How energy gets from where it’s made to where it’s used, who is responsible for each stage and what this means for you.

How energy is made

Great Britain (England, Scotland and Wales) gets its energy from a range of sources. Some of the energy is made or ‘generated’ here, for example:

  • electricity from renewable or clean sources like wind, solar or nuclear power
  • gas from fossil fuels, like coal or oil

Some of the energy is generated elsewhere and imported, for example:

  • gas and electricity from Europe, transported via pipelines and large undersea cables called interconnectors
  • liquefied natural gas brought here from countries like Qatar and the United States

Once it’s been generated or brought here, it’s now part of the energy system. The National Energy System Operator (NESO) is responsible for making sure there is enough supply to meet demand.

How energy is moved over long distances

Moving energy over long distances from where it is generated to where it can be distributed locally is called ‘transmission’. This is done at high voltage for electricity, and at high pressure for gas.

Three transmission owners (TOs) manage the equipment needed to transmit electricity, including power lines, pylons, cables and substations. These are:

National Gas Transmission manages the equipment needed to transmit gas, including pipes, compressors and pressure reduction stations.

How energy gets to your local area

High-voltage electricity and high-pressure gas are not safe for you to use in your home. Taking the energy from the transmission networks and turning it into energy you can safely use is called ‘distribution’. 

Electricity distribution network operators (DNOs) manage the equipment needed to distribute electricity, including:

  • low-voltage and medium-voltage power lines
  • substations
  • transformers

You’ll need to contact your network operator if you want to connect your home to the network, install new renewable energy technology like solar panels, or to report a power cut.

Find out who your electricity network operator is and how to contact them.

Gas distribution network operators (GDNs) manage the equipment needed to distribute gas, including:

  • lower-pressure gas mains and pipes
  • pressure reduction stations
  • monitoring and control systems

You’ll need to contact your network operator if you want to add or change a connection to the network, or to report a gas leak (if you smell gas, call 0800 111 999 immediately).

Find out who your gas network operator is and how to contact them.

How you get the energy you need

An energy supplier buys electricity or gas from generators, then sells it to you at the tariff that you’ve agreed. They calculate and issue your bills based on how much energy you’ve used in the billing period. 

You’ll need to contact your supplier for questions on things like billing, metering or getting extra support.

Find out more about dealing with your supplier.

Your energy costs

Each of the steps in making and moving energy to homes and businesses incurs a cost. These are added to your electricity and gas bills as part of your unit rate and the standing charges you pay.

Your unit rate is the price you pay for every unit of electricity or gas you use. It is measured in kilowatt hours (kWh).

This cost covers what your supplier has paid a generator for that energy.

The standing charge is a cost set by your supplier which covers the cost of:

  • moving energy from where it is made to your home or business
  • balancing supply and demand in the energy system
  • supplier operating costs and margins (overall earnings before deducting interest, tax and other costs)
  • meter maintenance and installation
  • paying towards some government social and environmental schemes, such as Warm Home Discount

How net zero affects the energy system

The energy system will need to be upgraded to make the most of low-carbon sources, and to include new technologies to support them. These upgrades will come at a cost, and will mean higher energy bills in the short term.

Find out more about our role in reaching net zero and how it might affect you.

Our role in the energy system

We regulate the companies that make, move and sell energy. We also act to protect the environment and consumers and businesses.

We do this by:

  • issuing licences and setting licence conditions
  • providing guidance for energy companies
  • managing changes to industry codes
  • making sure that energy companies are following the rules, and taking action if not
  • setting the energy price cap

Find out more about what we regulate.