In IREMA, Regional Electricity Companies (REC) and Electricity Distribution Companies (EDCs) constitute the main buyers in the wholesale electricity market. These buyers can supply their demand through the wholesale day-ahead market, bilateral contracts and power exchange. In general, industrial end users are supplied by RECs. But large industrial end users that their demand exceeds from 5Mw, can purchase their required power bilaterally. Retailers purchase their required power from power exchange and supply their customers.
In IREMA, market operator holds a single sided auction for the sellers. The buyers predict their demand and announce it to the market operator. On behalf of the buyers, IGMC purchase the electricity from the suppliers. Depending on the actual consumption, the buyers will be charged for the energy and transmission services costs.
The ownership of the distribution companies are depicted below.