Understanding the energy supply industry helps you understand how energy charges are calculated and how to improve the deal you are getting from energy service providers.

What you need to know

  • The energy supply chainEnergy is delivered through a series of processes. Knowing the different parts of the supply chain and who the key players are is the first step in understanding how energy is priced.
  • How the energy markets operate Electricity and gas are traded on different markets depending on where you live. Understanding how energy is traded on those markets provides insights into how costs are passed on to you through your retail bills.
  • Wholesale price volatility and how it is managed Price volatility in the wholesale market is the greatest risk your energy retailer has to manage. Understanding how this is risk is managed can assist you to negotiate a better deal.
  • Tracking energy pricing information – There are several information sources which can help you track energy price movements, and be better prepared to negotiate procurement contracts.