The first part describes the historical development of the electricity market, which has been followed by electrical companies since the eighties of the twentieth century. For years, the electric power sector was a vertically integrated monopoly in state/private ownership, which, as a model of the organization of the electricity market, proved ineffective due to the unrealistic price of electricity. This, along with technological progress in the production and transmission of electricity, imposed the need for reform, i.e. liberalization of the electricity market. The only competitive market results in positive effects for all participants in market competition. This prompted a series of reforms throughout the world. Restructuring, regulation and privatization of the electric power sector took place. The reasons for the restructuring are also listed. Over time, the basic models of the organization of the electricity market are formed. We distinguish between three basic models, the model of vertically and horizontally integrated monopoly, the model of one customer and the market model that can be organized as a wholesale market and retail. The second part describes the main participants in the electricity market, as well as their roles and responsibilities. In the third part, the ways of determining the price of electricity in market conditions are briefly described. Price formation is a complex process that requires reaching a compromise between different interests and expectations. Finally, in the last chapter, an overview of the electricity market in the Republic of Croatia was made. Development of the electricity market. of energy is a continuous process that adapts to technical, economic and liberalization requirements.