A complete system of transport equations with all the important perpendicul
ar currents is derived for the simulation of tokamak edge plasma. These tra
nsport equations are implemented in the B2.5 code and solved for the parame
ters of the ASDEX Upgrade tokamak. The relative roles of different mechanis
ms of transverse conductivity in the formation of the potential profile are
studied. It is demonstrated that a reasonable potential distribution in th
e tokamak edge plasma can be obtained without an ad hoc assumption of the e
xistence of the anomalous perpendicular conductivity. The role of E x B dri
fts in the redistribution of edge plasma and closing of the currents in the
plasma is analysed.