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Pellet stoves use compressed wood pellets as fuel, which are fed into the stove’s burn chamber by an automated hopper system. The pellets are ignited by an electric element, and a fan circulates the heat throughout the room. 

The cost of running a pellet stove depends on the price of pellets, electricity, and the stove's efficiency. Generally, pellet stoves are cost-effective, especially when compared to traditional heating fuels like oil or electricity. 

Yes, pellet stoves need venting to expel combustion gases. However, unlike wood stoves, they do not necessarily need a traditional chimney. Pellet stoves can be vented through a wall or roof using a special vent pipe, making them more flexible and easier to install in various locations within a home.

Pellet stoves are generally designed to burn specific types of pellets, typically made from hardwood, softwood, or a blend of both. While most stoves can handle different pellet types, some stoves are optimised for one type over another, and using the wrong type could lead to more frequent maintenance or even potential damage. Always choose pellets recommended for your specific stove model for optimal performance.