A prospective model of Bangladesh electricity market

The traditional vertically integrated utility company combines the generation, transmission, distribution and customer service in a seamless operation that makes no detailed distinctions about the costs of each of these four activity levels. The target of deregulation of electricity market is to create an open access to assure perfect competition among purchasers and sellers and establish a reliable, secure and affordable electrical power system. So electric markets around the globe are undertaking unique changes related to deregulation to improve the efficiency of electricity power markets. Independent System Operator (ISO) and Power Exchange (PX) play very crucial role on unbundled power market. The integrated single buyer electricity market model of Bangladesh has very limited access of retail competition that lead to monopoly business of electricity. In this paper we propose a structure for the vertically unbundled electricity market of Bangladesh on the basis of existing electricity market around the world.