Figure 1.

An overview of retailer-based electricity market

According to this figure, the electricity is generated in a power station and transmitted over the transmission line to the substation. From the substation, electricity is distributed among customers for consumption. Here, the retail-based electricity market is responsible for the trading of electricity for the customers where the financial contracts to facilitate this flow of electricity are done between generators and retailers as well as between the retailer and the customers through the electricity market. All the images used in this figure have been taken from royalty free image Website: https://pixabay.com/.