Retail vs Wholesale Price

The wholesale price is what generators are paid and large buyers pay for electricity in bulk, set by markets such as the day-ahead auction, and it changes hour by hour. The retail price is what a household or business actually pays on its bill: it bundles the wholesale cost with network charges, taxes, supplier margins and often a fixed standing charge, then averages the total over a billing period. A retail price barely moves even on a day when wholesale prices swing widely or turn negative.