UK electricity market

The UK electricity market operates by matching supply from various generators—such as power plants and renewable sources—with consumer demand. Suppliers buy electricity through a competitive wholesale market, and consumers pay prices influenced by generation costs, demand, and regulations. The market includes a balancing system managed by the National Grid, ensuring supply matches real-time consumption. Additionally, government policies promote renewable energy and prices are affected by factors like fuel costs, technology, and market competition, all aiming to maintain reliable, affordable, and sustainable electricity for consumers.