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 Victoria.

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.