Retail Electricity at Energy Bourse

Retail Electricity at Energy BourseRetail Electricity at Energy Bourse

Retail electricity was offered last week in the energy bourse and retailers will be allowed to buy up to 5 million kilowatt-hour of electricity per year, the supervision director at the energy bourse announced.

"Electricity retailers have officially entered the energy bourse," Hamidreza Bagheri said, adding that contractors should obtain the energy ministry's approval for operating in the energy bourse and retailing electricity, Mehr News Agency reported.

He reiterated that non-governmental, legal entities can embark on the purchase of electricity annually and sell it to either industrial consumers or redistribute it at the energy bourse.

A competitive electricity market will allow customers in the long run to choose their power supplier from among several companies, as opposed to being a customer to a single, usually state-owned distributor. In addition, electricity retailing in the bourse will not only make prices competitive but also increase the quality of services, according to experts.

Electricity retailing is also widespread in the US and Europe and consumers can choose the type of contract that best suits their needs.

Long-term plans call for the withdrawal of government from providing electricity to end consumers, and privately-owned companies will take over the task. The energy ministry will provide infrastructure (cables, distribution system, etc.) , yet delivery will be carried out by retailers. Thus, consumers will no longer pay their bills to the state-owned company.