---

Power industry is a fundamental and strategic industrial sector and acts as a true driving force and generator for many other industries. This sector, therefore, represents great attraction for the privatization purposes. In this regard, the present study has analyzed the status of the electricity market by comparing the Iranian electricity stock market with the stock markets of many countries and has provided guide lines for the development of this market in Iran. The results of this study indicate that the manufacturing sector which is under government monopoly has not ability to respond to community needs with low price. On the other hand, the results of this research indicate that the productivity of power industry is lower than expected. Therefore, to improving the productivity of power industry, it is important to pay attention to the privatization and development of electricity stock market and implementation of suitable context for the development of Iranian power stock market.