Jim:

In broad terms, the way it works here in the UK is that the central government (equivalent to the federal government in the US, Canada and Australia) owns the power stations, which then contract with National Grid plc, who own the main overhead wires (either at 230 kV or 400 kV as they are upgraded), to distribute the electricity generated. This in turn gets distributed via substations through secondary lines (in my case owned by YEDL - Yorkshire Electricity Distribution Limited, who have responsibility for ensuring the electricity gets physically delivered in Yorkshire and Lincolnshire, which is the county in which I live) to the end user. However, I don't buy my electricity directly off YEDL - instead, it gets sold to to providers (in my case it is Scottish Power), who contract with YEDL to buy so many units. The more units they buy, (hopefully) the lower the unit cost (i.e. per kW.h), which competition means they will (in theory) pass on to the consumer.

The idea was (and still is) to provide competition within the marketplace (i.e. at end user level), by separating the distributor (i.e. National Grid and the local distributors) from the providers. Whether it works or not is a moot point - it probably did work in the beginning, but intense competition has more or less levelled the playing field. I should add that there is a government body called Ofgen who oversee the whole consumer pricing structure, and are supposed to make sure that the consumer is getting a fair deal, especially when it comes to passing on wholesale price increases (i.e. what the power stations initially charge).

Hope this helps

John F-L


----- Original Message ----- From: "James R. Frysinger" <j...@metricmethods.com>
To: <j...@frewston.plus.com>
Cc: "U.S. Metric Association" <usma@colostate.edu>; "Robert Bryce" <rob...@robertbryce.com>
Sent: Monday, September 21, 2009 4:25 PM
Subject: Electrical transmission and distribution


First of all, I'm changing the subject line.

Second, John has said something here that intrigues me. How do you go about changing your provider of electrical energy, John? Do you have to connect your house to a different set of distribution wires? Or, if you keep the connection the same, who owns the wires you're connected to and how are they reimbursed for their use?

In the U.S., one has no choice in provider. Only one company's wires pass down the street and one must buy from them. The companies buy and sell electrical energy amongst themselves under regulations established by regional authorities.

Indeed, the Cap and Trade bill in our Congress at this time would require companies to generate or purchase a certain percentage of the electrical energy they distribute from "green" sources, which in fact might not be directly attached to their transmission grid.

Jim

John Frewen-Lord wrote:
In the UK (and Oz will use broadly similar terminology), electricity comes from things we call 'power stations'. My electricity is supplied by Scottish Power (and no, I don't live in Scotland, they are just the provider - I can choose between any number of providers)....

--
James R. Frysinger
632 Stony Point Mountain Road
Doyle, TN 38559-3030

(C) 931.212.0267
(H) 931.657.3107
(F) 931.657.3108


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