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 through 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 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 manage the equipment needed to transmit electricity, including power lines, pylons, cables and substations. These are:
- National Grid Electricity Transmission in England and Wales
- SP Energy Networks in southern and central Scotland
- Scottish and Southern Electricity Networks Transmission in northern Scotland and the Scottish islands
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. Moving the energy from the transmission networks and turning it into energy you can safely use is called ‘distribution’.
Electricity distribution network operators manage the equipment needed to distribute electricity, including:
- low-voltage and medium-voltage power lines
- substations
- transformers, which are used to ‘step down’ from high voltages to lower voltages
Contact them if you want to report a power cut, connect your home to the network, or install new renewable energy technology like solar panels.
Find out who your electricity network operator is and how to get in touch.
Gas distribution network operators manage the equipment needed to distribute gas, including:
- lower-pressure gas mains and pipes
- pressure reduction stations
- monitoring and control systems
Contact them 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 get in touch.
What an energy supplier does
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 need to contact your supplier for questions on things like billing, metering or getting extra support.
Your energy costs
Each of the steps in making and moving energy to homes and businesses has a cost. These are added to your electricity and gas bills as part of your unit rate and the standing charge 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 earnings
- installing and maintaining electricity and gas meters
- 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 meet increasing demand, and to help us get more of our energy from low-carbon sources. 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.
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