Study On Power Market Rerorm And Competitive Price Model Of Power Generation Market

The development history of electricity industry in China is reviewed in the paper, then the main problems and current conditions which Chinese electricity industry is facing are analyzed. A conclusion is draw that the main reason that leads to the low efficiency in the power industry is the shortage of competition in the internal of electricity industry. Due to the special feature of transmission network which is easy of leading to natural monopoly, the way to improve the marketing of power industry from economic view is raised: the power plants and transmission network should be separated, namely that the run management of transmission network which has natural monopoly feature should be separated from the run management of power generation and sale which has competitive feature; the market of power generation and sale should be opened and operated in the market-oriented system; the management of power transmission field could be monopolized under the government restraint.