An overview of the Victorian electricity industry
The electricity industry in Victoria is divided into four
distinct parts, with a specific role for each stage of the supply
chain – generation, transmission, distribution and retail.
Electricity generators are the power stations
that generate electricity, produced from coal and sources such as
wind and the sun.
Electricity is transported via the transmission
network from power stations to major distribution points (terminal
stations) via large tower structures.
Businesses like UE are electricity
distributors, which own, operate and maintain the
network (the poles and wires in your neighbourhood), converting
electricity from the transmission network into high and low
voltages and delivering it to homes and businesses. Each of
Victoria’s five distributors serves a different geographic area of
Electricity is bought in bulk from generators by electricity
retailers who sell it to electricity consumers.
They work with the local distributor to have electricity delivered
to customers through the wires in the street. The primary
relationship between a customer and the electricity network is
managed by the retailer; these are the businesses that send and
manage electricity bills. Customers can choose which retailer they
wish to work with – a number of different electricity retailers
operate in each geographic area.