An electricity market can be described as, “…a system for effecting the purchase and sale of electricity using supply and demand bids to set the price [3]”. Over the years, the power industry remained vertically integrated, that is, a central authority monitored and controlled generation, transmission, and distribution. In the last decade, the industry has been evolving. It’s being restructured, especially the separation of transmission and generation. A step in this direction is deregulation through which the state aims to lift conditions on units and individuals to boost efficiency. Deregulation will promote competition which will lead to reduction in power cost. Therefore, it is imperative to set up a controlling agency, - a power system operator - to manage the dispatch of generating units and meet the demand from across the transmission grid. This operator must be independent of the market competition, and thus is usually called the Independent System Operator (ISO). Privatization and deregulation will not only intensify competition in power market but also lead to additional production and consumption. This is likely to put a strain on the transmission system and congest the system. Hence, congestion management is a fundamental transmission management problem. In this paper, a power market analysis tool is designed for congestion management. The tool develops an interface between Power Worldsimulator professional software tool and MATLAB to compute power flow. The tool analyzes power flow results while batch-processing of large case studies are done in IEEE 9 bus bus system. This aids the user in congestion management. This paper will use an optimal power flow framework (OPF) to deal with the congestion problem in a deregulated power market. In this research, the transmission lines are decongested using SVC method then, costs are calculated while considering the installation of the SVC in the transmission network to cut expenses. After detecting congested lines, we apply SVC on that particular bus. The IEEE 9-bus system is used to simulate the market and illustrate the proposed method. The simulation done is in MATLAB. The results show that when SVC is included the voltage profile of congested bus significantly improves, thus reducing the congestion. The results are verified in power world simulator software. Hence, it can be said that SVC is a viable option for congestion management, both from technical and economical point of views.