Updated on August 20, 2025
We talk about the electrical grid a lot in these articles. It’s a massive network that provides utilities to Australians. How does all this relate to you while you are shopping for a solar system?
At PSC Energy, we want you to feel more confident during the decision-making process while you’re shopping for solar. Energy distributors and energy retailers are different entities, and understanding their roles is the first step towards mastering the relationship your solar system will have with the grid. So, let’s look at the difference between distributors and retailers and the roles they play in the energy supply chain.
In this article, you will learn:
- What’s an Energy Distributor?
- What Does an Energy Distributor Do?
- Who Are the NSW Energy Distributors?
- What’s an Energy Retailer?
- What’s an Energy Retailer Do?
- Who Are the NSW Energy Retailers?
- FAQ: Energy Distributors vs. Energy Retailers
By the end of this article, you’ll have a comprehensive understanding of the differences between these two services and how they apply to you. Play on!
What’s an Energy Distributor?
In Australia, Distribution Network Service Providers (DNSP), commonly known as distributors, maintain the electrical grid. This includes the poles, wires, stations, and substations that all contribute to getting electricity to homes.
New South Wales has three distributors—Ausgrid, Essential Energy, and Endeavour Energy—each of which functions on a separate network. The networks are divided by region.
- Ausgrid is the eastern part of Sydney and extends up to Newcastle.
- Endeavour Energy covers the western suburbs around Sydney and extends south beyond Wollongong.
- Essential Energy is the DNSP for the rest of New South Wales.
If you’re interested in learning more about solar systems, you might want to check out our introductory article titled, New to Solar: Start Here.
What Does an Energy Distributor Do?
Electricity distributors are responsible for constructing and maintaining the infrastructure (of poles, wires, stations, etc.) that distributes electricity to homes and businesses throughout New South Wales.
Understanding the distributor’s role requires a bit of understanding of the Australian energy industry. In simple terms, most electricity comes from large, centralised generators. These centralised generators are where resources like fossil fuels or more energy-conscious alternatives like wind turbine farms produce electricity.
The generated power is transformed into high-voltage electricity and sent over long distances through transmission networks. The transmission network is all the wires, towers, and poles (though they can be underground as well) that deliver power across the DNSP grid.
In the journey from fossil fuels to your home, the high-voltage electricity needs to be converted into a lower voltage to be usable in a home or business. Within the DNSP grid are transformer(s) and/or substations. Their primary function is to convert (transform, if you will) electricity from high voltage down to low voltage, usable in your home.
Common transformers in the network in kilovolts-amperes (kVA) are:
330kVA down to 132kVA, 132kA down to 66kVA, 66kVA down to 33kVA, 33kVA down to 11kVA, and finally 11kVA down to 230/400 volts.
The distributor maintains the infrastructure that converts and delivers this electricity. If you encounter a power outage or damage to energy infrastructure, such as fallen power lines, your electricity distributor is the one you call to repair it.
What NSW DNSPs Do:
- Manage the electricity infrastructure.
- Repair the network (poles, wires, and transformers) when necessary.
- Restore power when there’s an outage.
- Manage the streetlights
What NSW DNSPs Don’t Do:
- Send you an electricity bill.
- Create or repair individual residential connections.
- Provide metering services.
New South Wales is a little different from other states in Australia when it comes to connecting homes to the grid. The DNSP doesn’t do it. Instead, a customer hires out an Accredited Service Provider (ASP), who is an accredited electrician or company. An ASP does all the work to design, construct, or install components that connect a customer’s home to the electrical grid.
If you’re interested in learning a bit more about weighing the cost of solar against the price of the grid, you might want to check out the following article titled, Cost of Solar Panels vs. Cost of Energy from the Grid.
Who Are the NSW Energy Distributors?
Ausgrid:
The Ausgrid Network delivers power to 1.7 million customers. Their network serves downtown Sydney and its eastern suburbs, extending north to Newcastle, and reaching inland areas like Muswellbrook, Barry, and Merriwa.
It used to be owned by the government. In 2016, Ausgrid changed ownership and transitioned to majority ownership by private investor groups. Ausgrid claims that — despite this shift — it has kept focused on safety and reliability while “anticipating the rise of decentralised renewable energy generation.”
Reach out to Ausgrid (if you’re in their region) for reporting outages, damage to electrical network equipment (like poles, wires, and transformers), and faults in streetlights. Customers can also contact Ausgrid for assistance in trimming trees that are getting dangerously close to power lines.
Endeavour Energy:
Endeavour Energy is adjacent to the Ausgrid network on its south and west borders. It delivers power to approximately 2.4 million individuals residing in households and businesses across Sydney’s western suburbs, the Blue Mountains, Southern Highlands, Illawarra, Wollongong, and the South Coast.
The Endeavour Energy network comprises 416,000 power poles and streetlight columns, along with 186 major substations and 32,000 distribution substations, all interconnected by an extensive network of nearly 50,000 kilometres of cables — larger than the distance between Sydney and London, round trip. Ownership of the company is divided, with a 50.4% stake held by an Australian-led consortium of investors and the remaining 49.6% owned by the NSW government.
For those residing on the Endeavour Energy network, it is the primary point of contact for reporting power outages, malfunctioning streetlights, fallen power lines, and any damage to network assets.
Essential Energy:
Essential Energy covers an expansive 95% of rural New South Wales and small portions of south-west Queensland. Notable urban centres served by the Essential network include Byron Bay, Coffs Harbour, Port Macquarie, Tamworth, Dubbo, Bathurst, and Wagga Wagga.
Beyond being a conventional “poles and wires” entity, Essential Energy distinguishes itself by initiating the “Essentials Communities Program.” This program actively offers funding opportunities to communities within the Essential network area. Essential Energy actively contributes to regional community development by supporting local halls and providing sponsorships to community groups striving to make a positive impact.
If you’re interested in learning a bit more about solar panels and energy systems, you might want to check out the following article titled, Are Solar Panels Worth It in NSW, Australia? A Price Breakdown for 2025.
What’s an Energy Retailer?
Retailers send you your monthly utility bill. While you can’t choose your distributor, you certainly can choose your retailer. Consumers have some control over the rate they pay for electricity.
Home and business owners can shop around a bit and compare different retailers to determine which price works best for them. There are also various options available to you depending on your situation, such as variable or fixed-rate energy plans.
When the retailer is creating your bills each month, they include a small percentage to be given to the distributor. In the words of The Godfather Part 2, “Don Fanucci must wet his beak.” In essence, you pay both the distributor and the supplier out of your monthly bill to get power to your building. When the power goes out, you call your distributor. If you find an issue on your bill, you call your supplier.
If you’re interested in learning a bit more about how to save with solar, you might want to check out the following article titled, Self-Consumption: How to Increase Solar Energy Use.
Power up your savings. Click here.
What’s an Energy Retailer Do?
An energy retailer buys electricity at a wholesale price and sells it to customers who own homes or businesses (really, anyone within a region who needs electricity). The retailer connects customers to the electrical grid and, as mentioned above, handles the service and billing.
The big energy retailers earn their money by marking up the price of electricity. They make more money when you use more electricity and — obviously – when your bills are higher as a result.
Enter solar.
You’ll want to make sure that you are on the best electricity plan for your needs. In addition to what it will cost to import energy from the grid for your home, you’ll also want to investigate whether or not a retailer offers a feed-in tariff (when your solar system overproduces electricity, you can sell it back to the grid for pennies per kilowatt hour). Some retailers offer a feed-in tariff, and some don’t.
Contact as many energy retailers as you can to find out what plans and discounts are available. Keep track of when your deal expires and check whether there is a better electricity plan for you. They do like to offer an introductory price that changes over time.
If you’re interested in solar batteries, you might want to check out the following article titled, Are Solar Batteries Worth It in NSW? PSC’s Ultimate Guide for 2025.
Who Are the NSW Energy Retailers?
There are simply so many.
Too many to list here. If you’re interested in finding out where you can get the most economical rate from an energy retailer, you can find a service like comparethemarket.com.au or something similar – the internet is full of sites that help you shop around for the least expensive rate.
It’s an excellent idea to spend some time looking at individual retailers too – study their individual websites rather than just relying on a third-party comparison tool, as rates and incentives are subject to change, sometimes rapidly.
Here are a few questions you might want to start with as you shop around:
1. What new deals and rates for solar do you have?
2. What are the advantages and disadvantages of any new offers for me?
3. What solar feed-in tariffs are available?
4. Will I receive credits on my electricity bill if I do not use all the solar energy produced by the panels?
5. How will solar affect my current electricity rates? Will I be charged a higher rate when I connect to solar?
6. What are the billing/payment periods?
7. Are there any fees or penalties for closing my account if I choose another retailer?
If you’re interested in learning a bit more about the price of solar batteries, you might want to check out the following article titled, How Much Are Solar Batteries? A Full Breakdown of Prices, Rebates, and Value in 2025.
Let’s talk solar savings. Click here.
Energy Distributors and Energy Retailers and You: Wrapping Things Up
Now you know the difference between an energy distributor and an energy retailer. They each influence how electricity gets to and from your home in relation to the electrical grid. With this understanding, making choices around your bill – particularly when it comes to what solar equipment you’ll want to invest in – should be easier.
At PSC Energy, we believe that informed customers are happier customers. With a bit of education about how the grid works, you’ll be empowered to get the best solar system for your unique energy needs.
If you’re interested in learning a bit more about solar and battery rebates in NSW, Australia, you might want to check out the following article titled, Ultimate Guide to Australia’s 2025 Solar Rebate and Battery Rebate: Federal and NSW Rebate for Solar.
FAQ: Energy Distributors vs. Energy Retailers
What is an energy distributor in NSW?
An energy distributor, also called a DNSP, maintains the poles, wires, substations, and transformers that deliver electricity to homes and businesses.
What does an energy distributor do?
Distributors manage and repair the electricity network, restore power during outages, and maintain streetlights, but they do not send you bills.
Who are the energy distributors in NSW?
The three NSW distributors are Ausgrid, Endeavour Energy, and Essential Energy, each serving different regions across the state.
What is Ausgrid and where does it operate?
Ausgrid supplies power to 1.7 million customers across Sydney’s eastern suburbs, Newcastle, and parts of inland NSW.
What is Endeavour Energy and where does it operate?
Endeavour Energy provides electricity to 2.4 million people in Sydney’s western suburbs, the Blue Mountains, Wollongong, Illawarra, and the South Coast.
What is Essential Energy and where does it operate?
Essential Energy covers 95% of rural NSW and parts of southwest Queensland, serving towns like Dubbo, Tamworth, Coffs Harbour, and Wagga Wagga.
When should you contact your energy distributor?
Call your distributor for outages, fallen power lines, streetlight faults, or damage to network equipment in your area.
What is an energy retailer in NSW?
An energy retailer is the company that sends you electricity bills. While you can’t choose your distributor, you can choose your retailer.
What does an energy retailer do?
Energy retailers buy electricity at wholesale rates, sell it to customers, and provide billing, customer service, and feed-in tariffs for solar exports.
How do energy retailers make money?
Retailers make money by marking up the wholesale electricity price and charging customers based on their usage and plan.
Can you choose your energy retailer in NSW?
Yes. Customers can shop around and compare energy retailers to find the best plans, rates, and solar feed-in tariffs.
Do energy retailers offer solar feed-in tariffs?
Some retailers pay you credits for excess solar power you export to the grid, but rates vary widely between companies.
What should you ask when choosing an energy retailer?
Ask about solar feed-in tariffs, current deals, billing periods, exit fees, and whether connecting solar affects your electricity rates.
Who are the energy retailers in NSW?
NSW has many energy retailers, including large providers and smaller companies. Customers should compare rates directly with each retailer.
What is the difference between an energy distributor and an energy retailer?
Distributors own and maintain the power network, while retailers sell electricity to customers and manage billing.
