Study On Deepen Structural Reform Of Electricity Industry In China

In1985, investment in the power industry was all from loans instead of appropriations, and the power industry began to reform its system. Finally, a clear direction of reform of the electricity industry, market-oriented reforms, was made in2002. The System Reform Program accelerated the process of market-oriented reforms in the power industry, but there are still some reform measures that have to be carried forward.Nowadays, China’s power industry is facing a series of new problems, and all of them point to the monopoly power in the vertical industry chain. This article put forward a prerequisite for the next step of deepening reform of electricity industry based on theoretical analysis, that is to separate of the transmission and distribution. By this separation, the monopoly power of Grid Corporation in the market will be broken, and it will bring more competition in the market, so that the government can relax the control on electricity, and configure power resources through the price of electricity.The full text can be divided into six parts. Firstly, there is a literature review of power system reform. Secondly, there is a retrospect of China’s electric power system reform and presents the need for market-oriented reforms. Thirdly, the author put forward the target model of the reform in China’s power sector. The fourth part is to analyze the problems faced by the electricity market reform, and find out the root causes leading to these problems-monopoly, and further pointed out that separating the transmission and distribution is a good measure to break the monopoly of the Grid Corporation. Part V gives out a framework of the reform of the Chinese distribution separation on the basis of foreign experience, and makes a specific analysis of the transmission and distribution separated path of reform and mode selection. In the analysis of transmission and distribution separation reform, this article draws on the experience of other countries and combined it with China’s own national conditions, put forward the reform framework and the separated implementation path of transmission and distribution., financial separation first and property separation next. Next, the article made a detailed analysis of the choice of transmission and distribution business model business model. This paper pointed out that the power dispatch agencies and organizations of power trading exchanges in China should be combined to set up a nonprofit organization, to ensure fair scheduling and keep independent from transmission grid companies in order to achieve fair access. And in the distribution business model, this paper pointed out that the Government should approve the establishment of an independent sale of electricity providers to give electricity consumers the right to choose their power electricity supplier. Besides, the local power supply bureau should be gradually transformed into independent power sales companies through the shareholding system reform to compete in the electricity market. Finally, in the sixth part, the author provides some proposals to deepen the power sector reform.