How does electricity get to your business, and who charges for it?

Electricity reaches your business through transmission and local distribution networks; your supplier sells the energy and bills you. NESO balances Britain's system around 50 Hz [S3]. Metering and data services record consumption for billing and market settlement. Follow both the physical connection and the contract charges before planning chargers, solar or batteries. Checked October 2026.

Last checked 18 October 2026

How does electricity travel from generation to your premises?

Electricity is generated from sources such as gas, nuclear energy, wind and sunlight [S2]. Transmission carries power over long distances; distribution brings it through local networks to businesses [S1]. Your supply contract is a commercial arrangement alongside that physical route.

This flow table follows a typical grid-supplied site. Some generation connects directly to distribution, so it does not all enter through the long-distance transmission system [S2].

The network stages follow Ofgem and NESO’s descriptions; the metering boundary is explained in the DNO connection guide [S2], [S1], [S7]. Use the table to prepare questions, rather than treating it as a wiring diagram for your premises. Your electrical designer needs to establish the actual ownership and connection boundaries.

What is the difference between National Grid, NESO and your DNO?

The national grid is the connected transmission system. National Grid Electricity Transmission is a network owner in England and Wales [S4]. That ownership role differs from the National Energy System Operator, or NESO, which balances electricity supply and demand [S1].

A distribution network operator, or DNO, operates the local delivery network [S1]. For a business project, establish the operator of the connection serving your address. Do not assume that the company sending the electricity bill also owns the local cables.

Britain’s alternating-current system operates around 50 hertz, or Hz: the current cycles at that frequency. NESO uses balancing actions and services to keep supply and demand aligned [S3]. This is a system-wide job. It does not settle whether your particular service cable can accommodate additional chargers.

For a directory of responsibilities, use who is who in electricity. The network and market roles here concern Great Britain, covering England, Scotland and Wales, as Ofgem explains its remit [S2]. Do not apply these arrangements unchanged to Northern Ireland.

Why does your supplier charge for networks as well as energy?

Ofgem groups business prices into wholesale energy, network and environmental costs [S6]. Wholesale is the purchase of electricity; the network recovers the cost of moving it. Your retail contract then determines how those costs are collected from you. A single unit price may combine several components.

Transmission Network Use of System, or TNUoS, charges recover transmission installation and maintenance costs. NESO publishes the charging arrangements, including supplier liability [S5]. Distribution Use of System, or DUoS, charges concern local distribution and are charged to suppliers [S9].

Policy costs have another purpose. Ofgem describes supplier obligations under schemes supporting renewable generation and supply security, including Contracts for Difference and the Capacity Market [S10]. These are not another stretch of cable between a power station and your meter.

Supplier operating costs and margin also contribute to the price [S11]. Ask what the quoted rates include, in writing. Identify bundled, separately billed and adjustable items before using a unit rate in a project calculation. We explain these mechanisms; we do not compare suppliers or recommend a tariff.

Read the business bill guide for invoice calculations. Use the business electricity price data as market context, rather than substituting an average for your own contract.

Who operates your meter and handles the consumption data?

The meter operator, often shortened to MOP, installs and maintains the meter. The DNO connection guide separates that role from network construction and the supply agreement [S7]. Arrange the responsibilities and appointment sequence before setting an energisation date.

Data collectors and data aggregators perform the market’s consumption-data work. Elexon’s supplier-volume allocation guidance identifies these agents alongside metering services and suppliers’ responsibilities [S8]. Settlement means allocating measured energy and the associated market obligations; it is separate from operating the cable and from sending your retail invoice.

Ask your supplier which data service currently covers your meter, who handles missing readings and how you obtain usable interval data. Keep the meter serial number, MPAN and supply address together when reporting an issue. That gives each organisation a consistent reference without sending unrelated customer information.

The half-hourly metering guide explains interval records and distribution charging. Link the data request to that guide rather than assuming that owning a smart meter gives you every dataset needed for a site design.

What this means for your site

Before adding equipment, prepare a responsibility sheet covering the connection application, supply contract, metering appointment and installation works. The DNO’s connection guide makes clear that completing network works and arranging a meter involve different parties [S7]. Ask your project lead to confirm the handovers in writing.

Request both a construction quotation and a recurring-cost assessment if you need more power. The network warns that DUoS charges may change after an upgrade [S9]. Keep those effects visible when considering load management, solar or storage; an equipment quotation alone cannot establish the full project cost.

For the connection stage, read grid upgrade costs. Prepare your actual load information before ordering hardware. Have your solicitor review any new connection or service agreement whose obligations are unclear.

What should you do next?

Start with cut energy costs and the site check. Bring your bill, capacity information and proposed equipment schedule, then get matched with an installer that covers your area.

Piggy Pineapple Ltd runs this referral service and may receive a fee when we refer an enquiry to installer partners. Our owner has shares in at least one partner. Before details are passed on, we name the intended partner and explain whether our owner has a shareholding in it.