The electricity industry comprises four main stakeholder groups:
Generators
Generation is the production of electricity. Electricity is produced either in power stations that burn coal, gas or oil or use nuclear fuel, or from renewable sources such as wind and water. Generation is a competitive market.
Transmission
Transmission is the bulk transport of electricity by high voltage power lines from power stations to grid supply points. The transmission system is generally referred to as the national grid. Transmission is a regulated business.
Distribution Network Operators (DNOs)
Distribution is the transport at a regional level of electricity at gradually reducing voltages from national grid supply points to final customers, both commercial and domestic. Nine DNOs hold the distribution licenses for fourteen areas in the UK. Northern Powergrid holds the licenses for North East England and Yorkshire. Distribution is a regulated business.
Suppliers
Supply is the process of buying electricity in bulk and selling it on to the final customer. Suppliers pay for their electricity to be transmitted across the national grid and the local distribution network to their customers. Electricity supply is a competitive market.