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An electricity supplier really isn't a supplier, just a middle-man. Electricity is produced by power stations, which is fed into the grid where customers consu
by billpg 7y ago
An electricity supplier really isn't a supplier, just a middle-man.
Electricity is produced by power stations, which is fed into the grid where customers consume it. The supplier isn't part of that process.
The producer sells the electricity at wholesale rates, which is purchased by the "supplier" company. The supplier company goes on to sell that electricity to their domestic/commercial customers at flattened rates.
Essentially, the supplier acts as an insurer against spikes in the wholesale price of electricity. Personally I'd love to be able to buy electricity without the middle-men because I would have the option to avoid peak times.