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The Electricity Market
A beginner’s guide
Most of the electricity we use is generated in local power stations by burning gas, oil and coal. However a growing amount comes from renewable sources like wind and water turbines. On the back of your bill you will find a ‘fuel mix’ table that provides details of where we source your electricity and it’s impact on the world we live in.
This ‘wholesale electricity’ is sold in the all-island Single Electricity Market where prices constantly change depending on several factors including supply and demand, currency exchange rates and the availability of transmission lines.
All suppliers buy wholesale electricity from this ‘pool’ and then pay the network operator for bringing it along their lines and cables to their customers’ premises.
There are also several market charges and government levies that make up around 50% of your bill that are totally outside the control of the electricity suppliers – see Price influencers.
All suppliers are different. They offer different products and services to their customers and when shopping around for the best deal you should consider all aspects of what is being offered including:
- Price – are you comparing like-for-like
- Quality of after sales service
- Payment options (and any late payment penalties)
- Contract period (and early exit penalties)
- Policy on estimated bills
- Online access to your account