This is the fourth major step in the electricity delivery process, which also includes generation, transmission and distribution.
Frequent reporting also allows the retailer to pass on the spot price (with some markup) to its customers.
The supply of electricity to homes, offices, shops, factories, farms, and mines became the responsibility of public utilities, which were either private organizations subject to monopoly regulation or public authorities owned by local, state or national bodies.
In some countries a statutory or government-granted monopoly was created to be controlled by legislation, for example Eskom in South Africa.
In the United Kingdom the electricity supply industry was radically reformed to establish competition, including a market in advising users about switching supplier.
[2] Deregulation of electric retailers has been subject to much controversy as more states have opted for competitive markets.