Investigating the Competition Status and the Impact of Market Power on Electricity Price: Case of Iran's Wholesale Electricity Market

Policy makers need to be acquainted with market competition statue. it would ease the decision making and restructuring of market. The aim of this study is to measure the competition of the wholesale electricity market and then investigate the impact of market power on wholesale electricity price during 2013 to 2017. The Result shows that market share of P.U.s in the wholesale electricity market is not notably large and H.H.I.’s fall in the competitive range. Furthermore, generally the fluctuation of H.H.I. has been diminishing during studied period. Although lack of significant market power, the results show it has considerable impact on wholesale price index. We propose that an independent regulatory agency may be responsible for the supervision of this market to achieve more market efficiency.