Think of it like a community pool that everybody gets water from.
The pool is filled up, bucket by bucket from the river. So If I want to use 10 buckets of water a day, somebody needs to put 10 bucks in the pool on my behalf. So lets say I pay Company A to do it. I’m not going to physically take their water, as its all mixed in. But because they are providing water, if I pay them, I can take an equal amount out.
Its similar to that way with power. Its all a connected grid. If I buy power from Company A, that power is not actually being sent to my house on Companies A lines. Instead company A is placing power onto the grid, and I am free to take an equal amount from the grid.
Also, even though I buy power from Company A, my energy company still maintains the lines. So I pay my company a distribution charge, and I pay company A the generation charge.
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