Analysis Of China’s Industry And Commerce Power Pricing Model And The Electricity Financial Market Equilibrium

Eighth session of the Third Plenary in November 2013 adopted the "CPC Central Committee on deepening reform of the overall number of major issues.""Decision"made perfect price mainly determined by the market mechanism. Those who can are formed by the market price to the market, without undue government interference. Promote water, oil, natural gas, electricity, transportation, telecommunications and other areas of price reform, price liberalization competitive sectors, enhance market transparency, accept social supervision, pay attention to the market a price effect.Throughout the development of the situation at all times of electricity, electricity market reform is an inevitable trend of history, while the core market reform is the reform of the power tariff. China’s current industrial and commercial pricing method-two-part tariff law, the existence of pricing unscientific, small scope, the cost of electricity is difficult to clarify the basic electricity tariff and the proportion of the tariff imbalance and many other issues, to become China’s market-oriented reforms of the resistance power.Since energy as a special commodity, with a large number of birth defects cannot be stored,"gives"the variability and volatility of the price. This feature makes the electricity market price risk faced by participants greatly enhanced.So the option contracts, forward contracts, futures contracts and other derivative financial instruments emerged, greatly reducing the risk of this price. Widespread attention at home and abroad electricity forward contract is an effective means of risk aversion electricity market, by signing long-term electricity contracts, and so was the power of "virtual"store up to solve a lot of stored energy cannot be fundamentally innate defects. This article will option theory applied to electricity forward contracts, the establishment of an option based on the theory of electricity forward contracts new power trading model, given the parties to the transaction electricity market more flexible, flexible options, this is entirely from the country The current reality of the electricity market. On the one hand, the power forward contract transaction model based on option theory has a wide scope, pricing science and other advantages, better make up for the shortcomings of the two-part pricing power. On the other hand, the power forward contract transaction model based on option theory interrupt if the price (the strike price) can be any price, in theory, it can create value through profit or loss (dummy values or value) of any form of state, then large amounts of capital will be attracted to the electricity market, thus increasing the liquidity of the electricity market, as China’s power market, science, health, providing positive energy and stable development.