Above - the electricity delivery model

The gas and electricity that Victorians use in their homes and businesses goes through four distinct phases in the energy lifecycle: 

Generation – Where gas or electricity is made and processed

About 85 per cent of Victoria’s electricity is generated by four brown coal power plants in the Latrobe Valley including Loy Yang, Hazelwood and Yallourn. Power plants can also be generated by natural gas, such as the Newport power station, while electricity is also generated through renewable energies, such as from the sun or wind. Most of Victoria’s gas comes from production plants such as Longford in the south east of Victoria or through the underground gas storage plant in Iona, near Port Campbell. SP AusNet is not involved in the generation process.

Transmission – Where electricity or gas is transported in high volumes across the state

Transmission involves the movement of energy through extra high pressure and high voltage powerlines and pipelines from the generators into distribution networks. In Victoria, the transmission assets are privately owned and operated, but subject to strict government regulation. SP AusNet is the sole electricity transmission business in Victoria and also owns 185km of gas transmission pipeline.

Distribution – Where electricity or gas is transported in lower volumes

The energy is then delivered from the high pressure and high voltage assets into lower volume energy for your home or business. This is done through the distribution system, which is the electricity poles and wires in your street and the local gas mains under the ground. In Victoria, there are many different businesses owning and operating the gas and electricity distribution systems, depending on where you live. Distributors are responsible for the quality and reliability of the supply of energy through the maintenance and management of energy assets (poles, wires, pipes and meters). SP AusNet is the electricity distributor for northern and eastern Victoria and the gas distributor for western Victoria.

Retail – The company that send you the bills

An energy retailer is a company that purchases wholesale energy from the generation plants and then sells that energy to its retail customers. They use the transmission and distribution systems like a freeway to deliver the energy to your home. Retailers develop products for their customers and generally manage the customer’s relationship within the energy market. Unlike the distribution system, you can choose who you’d like to purchase your energy from. SP AusNet is not involved in the retail section.