The key differences between an electricity distributor and a marketer focus on their roles and responsibilities. We are going to analyse one by one.

⛓️ Electricity distributor

Main function: distributors are companies responsible for the physical infrastructure of the electrical grid. This includes the construction, operation and maintenance of electricity transmission and distribution lines, as well as the transformers and substations needed to carry electricity from generating plants to homes and businesses. In general, it is the one that is responsible for bringing electricity to your home. And the quality of your power supply depends on it.

Service Area: we can't choose the one we want. They operate in specific geographical areas and are responsible for ensuring that electricity arrives safely and reliably at consumption points within their assigned territory. They are regulated by government authorities and have no competence in the choice of electricity suppliers.

Fees: The government sets distribution rates, which are included in the electricity bill and are used to cover the costs of operating and maintaining the network. This price appears on our bill as an “access fee”.

⚙️ Electricity marketer

Main function: marketers are companies that buy electricity from generators or other sources and then sell it to end consumers. Its focus is on contract management, billing and customer service.

Choice of supplier: As a consumer, you have the option to choose and change your electricity supplier whenever you want. You can compare different offers from retailers and select the one that best suits your needs in terms of prices, energy sources, additional services, etc.

Fees: they set the electricity rates they charge you as an end consumer. These rates may vary depending on the retailer and the contract selected. It is with the marketer that we sign the supply contract, and she signs a contract with the distributor on our behalf.

In short, the distributor of Electricity takes care of the network infrastructure and delivers electricity to points of consumption, while the marketer focuses on the sale of electricity and the management of contracts with consumers. In liberalized markets, consumers can choose their dealer, which encourages competition and offers more varied options in terms of prices and services.

How do Electricity Market Dealers and Distributors interact?

To receive electricity in your home or business, you need the collaboration of both entities. Here's how they work together:

• Contracting with the Merchant: you start the process by choosing a marketer and signing a contract with them. This sets out the terms of your electricity supply, including the rate you'll pay.
• Distribution by the Distributor: Once you have a contract with a marketer, they contact the corresponding distributor that is responsible for bringing electricity to your location. They maintain and operate the electrical grid that allows electricity to reach your meter.
• Merchant Billing: The retailer issues your electricity bills, which detail the cost of energy and associated services. This is the cost you pay monthly.
• Maintenance and repairs: in many situations, the point of contact remains the marketer. If you have problems with your power supply, such as a service interruption, she is the one who manages it by talking to the distributor. In general, for any problem you have, you must first contact your marketer, and if it's not something you can solve, they will tell you to contact the distributor.
  

🤷🏽 ‍ ♂️ Who's who?

If you still have doubts about what each of these companies do and what part of the electricity bill each one takes, here is this diagram that clarifies how the supply works and who are the players in the electricity market:

📰 How many electric retailers and distributors are there?

In Spain, there are more than 400 trading companies of light in the free electricity market. All of them you can find on the CNMC website.

In addition to companies that operate in the free market, there are reference marketers. Unlike the previous ones, they operate in the regulated market. And it is the government that determines the price of the fixed and variable terms that they will charge their consumers. The rate that includes these prices is the so-called PVPC, or Voluntary Price for Small Consumers.

As for companies electricity distributors, there are 5 big ones which cover almost the entire territory, and in total there are more than 300, most for small areas with very few customers. You can find all of them in this CNMC list. It is very likely that you belong to one of the big ones, because they cover a larger volume of people. As we have already mentioned, companies electricity distributors they are not found all over the country, that is to say each one has an assigned zone.

These are the main distribution companies in Spain:

• E-Distribution that belongs to Endesa
• I-de which belongs to Iberdrola
• Viesgo
• E-Redes that belongs to EDP
• UFD that belongs to Naturgy

We leave you this map, showing the electricity distribution by area in Spain:

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👩🏻 ‍ 💻 Your Polaroo manager helps you

If you have more questions about how Electrical Distributors and Distributors work, from Polaroo we can help you. Ask us!

If you want to know more about us and the advantages of hiring our service, you can consult the webpage.