ANALYZING THE RETAILER'S PROFIT IN ELECTRICITY MARKET BASED ON CONSUMER'S BEHAVIOR

Due to exchange costs, only huge consumers select direct buy from wholesale market. Most small and medium consumers, buy energy from retail market (this market has bought electricity from wholesale market). In this model, the “wires” activities of distribution companies are normally separated from their retail activities; because these companies no longer have the local monopoly for providing electricity in the area they cover. Thus, in this model the exclusive function is only related to constructing and exploiting the transmission and distribution network. Retailers are essential for small consumers, because small consumers buy electric energy from a retailer and hire a connection from their local distribution company. Contribution of small consumers in the market is not beyond the selection of a retailer between all the retailers, and also they do not have an active role like big consumers through direct buy from the market.