Research On The Regulation Reform Of The Electricity Pricing In China

Along with the deepening development of the market economy in China, it is imperative to reform the regulation of electric power industry, which is a traditional natural monopoly industry. Power industry is the basic industry which is related to the people's livelihood. As the core content of the reform of the power system, the reform of electricity price is related to the success of reform of the entire power industry. Therefore, the research on forming mechanism and regulation-reform of power price in China will undoubtedly have important practical significance.The price structure of China's entire power industry is basically a continuation of the planned economy of the government pricing model. Because the price of other industries has been formed by the marke competitiont, the power price affected by it has been mixed into some elements of market economy in the price formation mechanism, but the electric power enterprise is the real leader in the actural price making. The power industry owns the following characteristics:the technical function is high; the economic feature is complicated; the information asymmetry is high, which makes the price making of government often tend to enterprises in the price game between government and enterprises. The lack of scientific method in price making leads to the monopoly position of the enterprises in the price making and the production inefficiencies. And at the present the enterprises report the cost of production, government audits, constitutes or agrees with the price, which provides the opportunity of reporting the false cost for the enterprises, so the cost lacks the binding mechanism. There is no real competition between power generation companies and the competitive bidding is not implemented. On the other hand, the power price structure is unreasonable, the single way of price making lacks the flexibility. In the end, the laws and supervise frameworks on the price regulation are not perfect, which is also an important issue in the power price reform of China.This paper regards the China's electric power price regulation as the research object. It analyzes the evolution, the current situation and the existing problems as well as reasons of China's power price regulation, using the analysis methods of the incentive regulation theory inregulatory economics, the general economic analysis methods and the game theory. The author proposes that we must reform the current power pricing inadequacies of price making according to the questions, implement the competition mechanism, fulfill the competitive bidding all-round, improve the price structure, introduce the incentive competition mechanism, perfect the laws and regulation construction and the regulatory functions of the regulatory agencies, develop renewable energy to solve the problems of energy shortage and power generation externality and so on.This basic framework and main contents of the paper are as follows:Chapter 1:Introduction. First, be rasing the issues, the paper introduces its background of writing, expounds its theoretical and practical significance of writing. Then it introduces the writing methods and the basic framework, presents the innovations and deficiencies.Chapter 2:The literature review at home and abroad. Foreign scholars discussesd the different categories and different explaints to regulation in brief, reviews at home and abroad power and electricity price regulation literature in order of time, the paper reviews the literatures at home and abroad as the premise and foundation of its analysis.Chapter 3:The related theories of power price regulation reform. First the paper introduces the asymmetrical information theory, the price regulation theory, the economics explanation of the power price regulation, Then analyzes the main factors that influence the price regulation, analyses the object of game, at the same time, it analyses the factors that affect the power price regulation in the game under the supply and demand, and obtains a price regulation path and the market supply and demand equilibrium path. Finally, it analyses both sides behavior in the game.Chapter 4:The analysis of the current situation and the existing problems as well as reasons of China's power price regulation. The paper describes the current situation of the government regulation of the power industry price in China, and introduces the existing problems of China's power price from the following aspects:power price structure means, pricing method, the price structure, price legislation and regulation mechanisms. It points out the problems and reasons existing in the electricity price regulation, analyzes the mechanism of the electricity price regulation is unreasonable, the electricity price regulation is the lack of scientificalness and China's laws and regulatory agencies are imperfect in the electricity price regulation.Chapter 5:Regulatory Reform in developed countries, the price of electricity compared with the reference. First, the power industry in different countries abroad, price regulation are introduced, that its success, so from the price regulation, the establishment of regulatory agencies and the power industry reform, and so reform of China's power has come to draw on the experiences and practices.Chapter 6:deepening the reform of the electricity market measures of price regulation. Proposed objectives and principles of tariff reform and power development under the direction of our country, in the generation, transmission and sale of electricity price rationalization put forward the construction, design and reasonable pricing, and improve China's power industry, to regulatory agencies, laws and regulations proposed reform measures.