Difference between Electrical Distributors and Marketers

Distribute and market, market and distribute. Did you know that many people are still not very clear on the difference between a distributor and a marketer of electrical energy?

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Often, these concepts can cause confusion if we do not know exactly what each one refers to. But we do not want this to happen, so we take the opportunity of this post to clear all the doubts that exist in this regard. Let’s start with the most basic… 

What is an electrical distributor?

These electricity companies are in a regulated, protected market, and their main task is to maintain a distribution network in a specific geographical area, as well as to measure and remote manage meters, basically. They are in charge of attending to the requests of the marketers to register or cancel a supply, take care of its quality and solve any type of incident or breakdown in the electrical network.

Electricity consumers cannot choose or change their distributor, as they are delimited by geographical areas. National Association of Electrical Distributors (NAED) founded in 190 was the first organization that was established as an electrical distributor. 

What is an electrical trading company?

It is responsible for bringing electricity to homes and setting rates, but not those who do the reading on the consumer meter. Unlike distributors, they can be changed when users see fit, in addition to buying and selling energy. Over the years, people become familiar with these concepts, especially when we have to contract an electricity supply for the first time, either because we have decided to rent or buy a house.

A new era for electrical management

The energy sector, the electricity bill, and the price increase generate hundreds of questions each year. Technological advances are bringing us a new era for energy management, and although it is still early to talk about it, little by little we will be entering a world of important improvements for the commercial and electrical management of the supply network. We find distribution and marketing companies, two different scenarios, but with the same backdrop: electricity.

For their part, the marketing companies are in charge of managing a large number of clients and, with them, different active contracts, invoices, records of service cuts, collection monitoring, incidents, documentation, etc. Sometimes they find it difficult to effectively manage such a large number of users, but thanks to new technologies they are finding systems that facilitate the process.

For distributors, the needs are different. They are born from the search for solutions to the problems that may arise in the electricity supply, to the saving of human costs and the obtaining of a greater benefit derived from their activity. 

What is the main difference between electrical distributors and marketers?

Now that you know what each one is in charge of, what would you say is their main difference? The main difference between these companies is in their functions: the commercialization or marketing company is in charge of buying electricity in the market, selling it and billing the service to consumers. The distributors, however, are the ones who bring energy to the homes, so they have the responsibility of ensuring quality supply.
You can easily find cheap business energy deals at Simply Switch that will help you decide which electrical distributor you want for your home and/or organization.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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