See The Power Market Reform Starting From The Mechanism Of Coal-Electricity Price Linkage

The reform of coal industry has always moved faster than that of electric power industry. Through the process of the two reforms with a time lag, the price of coal and electricity have been at odds because of the different pricing mechanism. But now, the government, the coal enterprises and the power enterprises have made great efforts and various attempts for the survival and improvement amid liberalizing thermal coal prices and the hard power system reform. Both the"coal-electricity integration"and the "Mechanism of Coal-Electricity Price Linkage" have their rationality and do make some effective achievements but have limitations at the same time. They can’t solve the market problems.After the literature review at home and abroad, this article will respectively introduce the marketable coal price and electric policies one by one:analyze the coal price from the angle of coal market supply and demand; analyze the electricity price from the angle of current policy and structural reform, and gradually lead to the discussions on origin and degree of their contradiction, and then providetheoretical basis for the inevitability of the birth of "Mechanism of Coal-Electricity Price Linkage".In the following chapters, using the writer’s institution asexamples, this article will emphatically analyze the content andthe calculation method of "Mechanism of Coal-Electricity Price Linkage" that arises at thehistoric moment, and analyze the influence of coal price and the"Mechanism of Coal-Electricity Price Linkage" on power enterprises management and then use "SPSS" to prove it. Results indicate that the cost per kWh of power generators and the coal price have a high degree of correlation and the corporate profits are highly sensitive to the change of the coal price. This shows that adjustments to electricity price made by the Mechanism of Coal-Electricity Price Linkage can really buffer cost impact of power generators.In the meantime, the author soberly realizes that there exist obvious shortcomings in the Mechanism of Coal-Electricity Price Linkage behind the benefits. The author found that since the 2005 implementation of’Mechanism of Coal-Electricity Price Linkage", both the frequency and range of adjustment towards electricity price lag far behind the change of coal price, that seriously influences the stable production of power generators.According to it, the writer will think about the existing problems in "Mechanism of Coal-Electricity Price Linkage" andthe ways to improve them, and propose refinement of electricity structure and the "additional fuel costs" as solutions.But such a perfect plan cannot work in the short term.So, on the micro, power generators still need to reinvent themselves in order to survive in times of need. Taking the his work units as example, the author provides a brief analysis about how to improve efficiency by means of technical reformation, and strengthening the construction of their own, and this business philosophy has its universality for power generators.On the macro, based on considerations of improving its self-sufficiency rate of raw materials, the power generators have begun another round of strategy coupling between coal industry and electric power industry, "Coal and Power Pool Project"(CPPP) approach. In this paper we provide a brief analysis about the advantages and disadvantages of the strategy, but it turns out to be also a temporary remedy that’s unable to achieve the optimal configuration of electric power industry market. Finally, through the summary and consideration of above policies, this article will attempt to propose solutions to promote the electric market-oriented reform and fundamentally resolve the contradiction between coal price and electric price--such as perfecting the law of the power industry, building the properly planning mechanism, especially breaking the monopoly of grid company, achieving competitive reconstruction in each section of the electric power production.