What is an electricity distribution company?

Electricity distribution

Do you know what an electricity distribution company is? Do you know the difference between a distribution company and a supply company? Do you know if you can choose or change distribution company? This article will try to answer these questions, which are very common among consumer.

The electricity distribution companies such as UFD are responsible for taking electricity from the high voltage transport networks to the different consumption  or supply points once it has been generated at the production points (power plants, wind farms, photovoltaic facilities, etc.), so users can use it when they turn on the switch.

They also manage, maintain and update the electricity distribution network, which consists of towers, cables, transformer stations, substations, etc., and are responsible for installing and maintaining meters, connecting new supply points, meter readings and repairing supply failures.

There are five large electricity distribution companies in Spain, including UFD, and over 300 small distributions companies. These companies are a key aspect of the so-called Energy Transition because they play a key role in reaching the objectives Europe has set for energy decarbonisation. The electricity distribution networks will be responsible for incorporating the significant increase of electricity consumption that is expected over the coming years, the distributed renewable energy, the increased use of electric vehicles and self-consumption.

What is an electricity distribution company

UFD is adapting to this new energy scenario through an intelligent combination of communication, electronic power, automation, telecontrol and sensorisation of the network, teleprocessing and smart meters, which enable the electricity distribution system to become a digital platform where the different agents can manage their energy flows. This guarantees the safety, quality and continuity of the power supply.

Can I choose or change distribution company?

The electricity distribution companies are assigned specific areas across Spain, so your electricity distribution company depends on your geographic region and is totally independent of the company you contract your power from, which is the supply company.


How are they different to a supply company?

The electricity supply companies buy electricity in the power market to sell on to consumers through a direct contract between consumer and supply company. The supply companies bill the electricity every month, depending on your consumption, and they inform you about the tariffs, offers and services. In contrast to the distribution companies, you can choose a supply company and change depending on what they offer.