Structure and regulation of electricty sector. Principles and motives for deregulation of electricity sector. Deregulation and restructuring of electricty sector, technical and economic conditions, participants in deregulated electricty sector, electricty companies in deregulation process. The process and status of deregulation in Serbia and surrounding region. Experiences with deregulation in world, European Union directive for the internal market of electricty, Energy Community of South-Eastern Europe. Basics of market economy and organization of electricity market. Regulatory models, access cost to transmission and distribiution power networks, transmission networks and market. Examples of the simulation of open market and energy balance of power distribution companies.