Research On Market - Oriented Reform Of China 's Electric Power Industry

Chinese Electric Power Industry is the basic industry in national economy. Because of the natural monopoly, China adopted the vertical integration monopoly mode to manage the electric power industry by the central government in the early stage of power industry. And now, with the development of market economy and the speeding up of the industrialization process, the Vertical integration management mode is not adapted to the development of Chinese electric power industry any more. Under the vertical integration management mode, there are many problems in the electric power industry,such as the shortage of funds and the shortage of power service and so on. These problems reduce the power production efficiency.To solve these problems, the central government policed a new policy of the fund-raising to improve the situation of power shortage of funds in 1985. The reform is the bud of the market-oriented reform of Chinese electric power industry. Chinese electric power industry entered the stage of market reform totally in 2002,because of the development of technical and economic characteristics of electric power industry. In 2002, the "electricity system reform program" proposed the goals of the market-oriented reform:separation of electric power enterprises and grid corporations, and entering power gird through competing price in power market. Now, Chinese electric power industry has formed the five major state-owned power generation enterprises (China Huaneng Group, China Datang Corporation,China Huadian Corporation, China Guodian Corporation,China Power Investment Corporation).The transmission and distribution side in Chinese power industry still be managed by the State Grid Corporation and China Southern Power Grid Company monopoly to ensure grid safety. But, in the process of promoting market-oriented reform of electric power industry, the benefit gambling between the government, the state-owned power enterprises, private and foreign power enterprises leads to the pace of market-oriented reform slowly.This paper is divided into five parts to study the reform of Chinese electric power industry. The first part isintroduction,include the background significance and research methods of the study on the market oriented reform of Chinese electric power industry. The second part studies the development and reform history about Chinese power industry, aimed at a comprehensive understanding and analysis of the particularity of the market oriented reform of Chinese power industry. The third part focuses on the relevant economic theory and the feasibility and necessity of the market-oriented reform of Chinses power industry. The fourth part analyses the difficulties and causes of the marketization reform of Chinese electric power industry. The fifth part proposes the specific measures of the various aspects of the market reform based in a clear position and role of the main body in the power industry.