Aussie Electricity: From The Generator To Your Door

The electricity that powers our homes is so interesting that it’s positively electrifying! Electricity transmission first started to become widely available in the late 1800s, powering public lampposts, trams, and homes. Since then, it’s changed the way that we live, work and play.

 

Instead of using cumbersome iceboxes, we have fridges; instead of dangerous kerosene lamps, we just flip a switch. But have you thought about how the electricity that powers your home, gets to your home in the first place? Let’s talk about the electricity supply chain!

 

 

Did You Know? 

 

● The first place in Australia to supply electricity to the public was Tamworth, NSW, in the form of street lighting. That was way back in 1888!

 

● Australia’s first electric tramway opened in Melbourne, in 1889, spanning 4km from Box Hill to Doncaster.

 

 

How the Electricity Supply Chain works

In Australia, the electricity chain is divided into three main players: electricity generators, electricity distributors, and electricity retailers. Generators generate electricity; distributors distribute that electricity; and retailers act as intermediaries, purchasing that electricity in bulk from the generators at wholesale prices. Then, they resell it to business and residential customers. They achieve that through various retail products (i.e. electricity plans).

 

Electricity Generators

 

Electricity generators produce electricity, to meet the demands of Australia’s electricity grids. WA and NT have separate electricity grids. But most of the country is powered through the electricity grid on the East Coast, one of the world’s largest interconnected grid. It incorporates around 40,000 km of transmission lines and cables, and powers almost 90% of the Australian population. Electricity generators in Australia may be coal, hydroelectric, wind, solar, etc. Most states are predominantly coal-reliant, but SA generated 60% of its power from renewables last year. 

 

 

Electricity Distributors

 

Generators supply the grid; the grid itself is operated by an electricity distribution network provider. They manage the transmission of safe, secure, and reliable electricity from the generator to homes, businesses, hospitals, schools, and so on. 

 

Let’s review the main electricity markets in Australia. In NSW, there’s Ausgrid, Endeavour Energy & Essential Energy; in VIC, there’s Citipower, Jemena, Powercore Australia, AusNet Services, and United Energy Distribution. There are two main electricity distributors in QLD: Energex and Ergon; NSW distributor Essential Energy also supplies power to customers along the QLD/NSW border.

 

The main electricity distributor in South Australia is SA Power Networks; some remote areas are powered by other distributors. ACT, TAS, and NT both have only one distributor: ActewAGL, TasNetworks, and Power and Water respectively. Lastly, WA is Australia’s last deregulated state power market, meaning that both Western Power and Horizon Power are government-owned. 

 

 

Electricity Retailers

 

Commonly referred to as electricity providers or power companies. These are the “face of power” that Australian residents and businesses deal with when they sign onto an electricity plan; they’re also the entity that you pay your bill to. Here’s a quick guide to residential electricity providers:

 

● NSW & VIC: 20+ companies per market; too lengthy to list here! However, you’ll find the full, current list at Electricity Providers NSW and Electricity Providers Victoria.

● QLD: Only South-East Queensland (SEQ) is deregulated; regional QLD customers are served by Ergon Energy. SEQ customers have almost 20 electricity providers to choose from; get the list at Electricity Providers QLD.

● SA: The most expensive state for power, but also the best performer for renewables! Almost 20 electricity providers to choose from in this market too; check out Electricity Providers SA for the list.

● ACT: There are seven players in this market: ActewAGL, Energy Locals, EnergyAustralia, Origin Energy, Power club, Red Energy, and Simply Energy.

● NT: Most residents have two choices: Jacana Energy & Rimfire Energy. Remote communities are served directly by NT’s electricity distributor, Power, and Water.

● TAS: Again, two choices in this market: Aurora Energy & 1st Energy.

● WA: Synergy

 

So the job of the electricity generator is to make the power, the distributor is responsible for making sure it reaches your home, and the retailer manages the “shop front”. And that’s a wrap!

 

Want to know more? Check out the Australian Energy Market Operator (AEMO) Learning Centre for more powerful info on the power, or mosey over to Econnex for detailed insight about the state of play in Australia’s major power markets.