Energy
Dictionary

 


wholesale

The sale of any commodity to a party who intends to resell that commodity to other parties is referred to as a wholesale transaction.

In the energy industry, wholesaling is distinguished from retailing primarily by the regulatory environment that governs wholesale transactions and the distances travelled by the energy. Interstate wholesale transactions fall under Federal Energy Regulatory Commission regulations in the United States, and even most non-customer sales within the same state are referred to within the industry as retail sales. Wholesale energy sales can be made between producers, marketers, brokers, utility companies and select high-volume end-use customers. The most common form of wholesale energy transaction made between energy producers or marketers and utility companies who serve the general public.

See also:

retailer, wholesale customer, industrial customer, wholesale competition, broker, marketer, Federal Energy Regulatory Commission, transmission