The Electric Power Industry Regulation Reform And The Research Of Yardstick Competition Applied

The reform in electric power industry regulation is one important part of the powermarket reform and has been in great attention all over the world. This paper is mainly todiscuss the price level regulation, and proposes that quality regulation and yardstickcompetition should be introduced on the basis of comparative competition between zones soas to form a comprehensive and encouraging regulation mechanism. The first stage of thisregulation is to introduce benchmarking to reduce the efficiency disparity between electricpower enterprises. The second is to employ the comparative competition model to drive theenterprises to compete to reduce the cost. Meanwhile, the quality regulation is implemented aswell to guarantee quality in the above two stages .In the paper the DEA method is used toappraise 17 local electric power enterprises' efficiency, and the impact of parameter changesand policy-making unit changes on the efficiency appraisal is analyzed in detail. Finally,several proposals on the regulation reform are put forward based on our work.