Electricity is complex but it doesn’t have to be complicated. There are many factors which contribute to the cost of electricity. This includes the generation, transportation, distribution, as well as the retail component.
How it works
The above picture gives a good summary of how electricity is supplied to your business.
Electricity is generated by a power stations situated in each state. This is then converted to high voltage by transformers for transport. Transmissions lines (the big power poles) carry the electricity generated accross long distances. Transformers convert electricity to low voltage for distribution. Distribution lines (smaller power poles) supply this to your business. Electricity retailers (Blue NRG) sell the electricity to your business.