The Research On Asset Management Of Power Grid Company In Different Regulation Models

A long period of time, electricity transmission and distribution sector has always been regarded as a strong basis of natural monopoly industries, in a complete monopoly of state, regulated by the government. Different regulation modes, as a result of the pricing formation mechanism for the electricity transmission and distribution sector, are different from the requirements of grid company's assets, especially the fixed assets managementBased on rate of return on investment regulation mode, the power grid company's regulated income closely ties with the number of company's assets. For power grid companies, additional investment in fixed assets continue to be a more effective means of making profit, while the company's operating costs would be able to recovery, and with the risks of operational costs up and down taken by consumers, therefore there is no pressure to reduce costs and improve efficiency.As the maturing of the power grid, power grids have been reduced the task of building, and changes in regulatory approach also have taken place, that mode of the rate of return on investment switched to incentive regulation, so grid company has to earn more profit only by reducing operating costs. For the assets management, the assets maintenance / replacement is regarded as the part that needing an effective way to reduce operating cost of the grid company. In this paper, from the point of view of efficiency in the use of funds, we make a quantitative analysis on the optimal asset maintenance / replacement portfolio strategy to ensure that the operating costs are maintained at a relatively low level.At present, China's grids regulation policy has gradually been converted to a more incentive mode of the cost-plus regulation which core issue is how to maximize the regulated asset. In this paper, a depth analysis of the meaning of regulated assets and the effect to pricing and regulated income at first, and on the basis of that, we design a way to approve the regulated asset. At the last of this chapter, several advice on how to improve the proportion of regulated asset in grid company have been put forward. In this paper, the innovative research methods in the application of System Dynamics Simulation Study on changes in the size of grid assets, makes the findings have more general significance. For the study of grid company of China, we break down the meaning of regulated asset and qualitative analysis of how effectively asset is approved.