Research Of China’s Electricity Price Regulation Problem Under The Background Of Economic Growth Pattern Change

Change the mode of economic development pattern is an important mission for China’s economy.The electricity market reform is also an important work under the goal of antitrust.There is an inherent conflict between two sides which appear to be compatible with each other. There is a electricity price paradox,the price of electricity regulation failure is the main cause of the conflict,The impact is cause the conflict between electric power market reform objectives and goals for sustainable economic development.Growth pattern continues extensive inertia,it is hard to change to the economic growth pattern which is resource saving and environment friendly.Firstly,this paper describes the concept of electricity price regulation failure problem under the background of economic growth pattern change.In this paper, electricity price regulation failure problem means the price of electricity can not reflect the cost of sustainable development and ignoring the scarcity of resources, existence the phenomenon of low prices and structural distortions and affected by regulatory failures and institutional constraints. Causing a departure from price regulation to economic goals of sustainable development goals and the economic development sustained extensive inertia.By contrast based on the lateral and longitudinal comparison of domestic and foreign-based dimensions,verifede that the low electricity prices is an objective fact in our electricity system.Because of coal is an important source of electric power supply system.Current electricity price can not reflect the cost of sustainable development and ignoring the scarcity of resources. There is a phenomenon of level and regional structure distorted which based on electricity price, the main reason is the price regulation fails since the founding of the People’s Republic of China.Secondly, this paper discussed the reasons of electricity price regulation failure problem.The reason comes down to electricity price regulation failure problem formed two regulatory failures and coal-electricity vertical institutional stuck.Two regulatory failures are as follows,(1980-1995)Traditional regulatory failures under transverse two-track formation,(1996-)regulatory failure based on incentive regulation and regional competition.Coal-electricity vertical institutional stuck means the market-coal and plan-electircity as represented by vertical electric dual-track pricing system shackled electricity and led the electricity price regulation failure problem more seriously.Thirdly,the impact of the electricity price regulation failure problem were analyzed in this paper.The most serious impact on Chinese economy that electricity price regulation failure problem generated was led to the conflict between electricity market reform and China’s economic and social strategy sustainable development.For example,China’s market-oriented reforms to promote the electricity of the large industrial consumers direct purchase reduce the cost of the enterprises which with features of high pollution, high energy consumption and high emission efficiency but low efficiency,formating a conflict between electricity market reform and resource price reform,because of the coal resource scarcity cost, environmental cost and sustainable development cost can not be reflected in the price system.It is indirectly led to large industrial electricity users to excessive consumption of coal, and contrary to the purpose of sustainable development.On the other hand, led to the electricity cross-subsidies expanded between general industrial and commercial users and large industrial users. Based on the DID method,this paper analyzed the effects of large industrial electricity direct purchase policy among Jilin,Liaoning and Heilongjiang provinces,the result shows that large industrial users direct purchase beneficial to weaken grid companies’ monopoly power, but increased its monopoly profits for general industrial and commercial users,which led to the power grid enterprises for general industrial and commercial enterprises to charge more monopoly profits while sustainable development costs were crowding. Electricity market reforms led to China’s economic development continues extensive inertia because of distorted electricity price structure that without considering the cost of sustainable development.Reasonable price reform and the reform of the electricity market as a whole should be based on the basis of sustainable development.Finally,this paper puts forward to solve the electricity price regulation failure problem on trategic vision. Electricity price regulation failure problem solution can not stick to the traditional thinking of solving the problem on the electricity itself,need co-ordination at a higher level,Relying on the strategic of building the country based on resources at strategic level to coordinate, relying on the promotion of smart grid technology research and coordination platforms at practical level.To solve the electricity price regulation failure problem as breakthrough,and to correct price cross-subsidization as a focal point, adjusting the industrial structure, promote technological progress and enhance the efficiency of energy-intensive industries.Actively promote the strategy of building the country based on resources.Improving the pricing system, adding the resource tax in the system,promoting energy restructure.Coordinate with the investment and promotion of smart grid.Strategy and practice together,to achieve sustainable development and green rise for China.