Information for energy customers
Last updated: 1 July 2013
Energy supply - how it works
There are three main components of the energy supply chain. These are the generation, network and retail components.
Electricity generators and gas producers produce energy. This energy is then sold on the wholesale energy market. The price for wholesale energy is not regulated and the price can change from time to time.
Energy is then transported along the networks to homes and businesses. The networks are the poles and wires or the pipes through which the energy is transported. For each fuel type there is only one business that owns the network which transports the energy to your house or business. This is because significant capital investment is required to build these networks. Multiple poles and wires or pipelines servicing one home would be inefficient and costly to consumers.
The prices charged by the networks are regulated by the Australian Energy Regulator.
Finally, energy retailers buy energy from the generators and producers, and pay to have it delivered to homes and businesses. The price you pay to your energy retailer for electricity and gas includes the costs of wholesale energy and delivery.
In NSW all 'small' energy customers (i.e. residential and small businesses using less than 100 megawatt hours of electricity per year or 1 terajoule of gas per year) can choose to be supplied at a regulated price. Some retailers will try to offer a better price than the regulated price. No matter which price you choose, it can still be affected by changes in prices for wholesale energy or delivery by networks.
More information on electricity and gas pricing.
Choosing electricity and gas retailers and comparing price plans
Electricity and gas customers in NSW can choose their energy retailer. A number of retailers offer a range of different options for supplying electricity and gas to your home or business. For information on how you can get a better deal from your energy retailer, or shop around for a better deal with other retailers, click here.
Save energy and save money
Energy efficiency is about using energy wisely and avoiding energy waste to achieve greater results for consumers. Energy efficiency saves money, protects the environment, enhances industry productivity and competitiveness, and contributes to energy reliability and security. By becoming more energy efficient we will all - government, industry, business and households - benefit financially, socially and environmentally.
For more information on how you can be more energy efficient go to Saving energy.
- National Energy Customer Framework
- Get help paying energy bills
- Choosing electricity and gas providers
- Energy rebates
- Stay connected through financial crisis
- Saving energy
- Energy Assistance Guide
- Privatisation of NSW retail businesses
- Questions & answers: NSW electricity and gas prices and assistance with bills