ABSTRACT:
Recent trends in the bulk power consumer have been towards into bilateral transactions service with
electric power utilities to avoid price fluctuations of energy market in a deregulated environment.
Electric power utilities need to know the actual cost of providing unbundled services in order to make
correct economic decisions that they should promote or curtail while considering their service
obligations. As part of these trends, the emphasis on the knowledge of providing unbundled
transmission service has been important and increase steadily. The concept of bilateral transactions
allows the consumers and utilities to work according to their policy and does not make them dependent
on everyday bid like in a pool model. Bilateral transactions enable consumers to make their best price
deals for generation supply with whoever in the competitive market is most effective to meet their load
demand. Allowing supplier to transact directly with consumers creates competition in terms of pricing,
contract duration, payment terms, type of generation and type of electric service on both sides of the
transaction. Generators compete among themselves to supply this demand. This gives consumers a full
range of choices among generator. Thus, bilateral transactions will provide a wide range of choices to
meet various customer needs.