Pricing Mechanism For China’s Trans-regional And Trans-provincial Power Purchasing And Selling

In recent years, driven by the demand and the national policies, the trans-regional and trans-provincial trade of electricity has become increasing active, and the trading volume has sustained to rise, to some extent, which solve the problems of China’s uneven distribution and unsound structure of power sources. However, with the volumes of transacts increasing, it does reveal some problems in the transacts:the low level of transactions marketization and the predominance of planned trading volumes have become the obstacles of the basic role of the market allocation of resources; the price formation mechanism of mainly government pricing distorts the market supply and demand, which hinders the price play the role of market adjustment; it fails reasonable distribution of interests space as the price approved and the determination of the pricing principle; the lack of independent pricing rights that makes the market position of trading agents weaken, and reduces the trading agents’enthusiasm. In view of the above questions, this paper tries to make an active exploration on the pricing mechansim for China’s trans-regional and trans-provincial power purchasing and selling.Firstly, this paper analyzes the formation mechanism of electricity on-grid pricing. Secondly, based on the review of the price policies related with trans-regional and trans-provincial power purchasing and selling, from the perspective of power generation enterprises, grid corporations and the end users, this paper studies the impact of current price mechanism on the interests of the trading agents, and combined with foreign pricing experience for cross-border electricity trade, it sums up the main problems of China’s current pricing mechanism. Finally, on the basis of the analysis of the power generation cost characteristics of the energy base, this paper designs an appropriate pricing mechanism of trans-regional and trans-provincial power purchasing and selling, including the price of delivery and the related supporting mechansim, to provide the theoretical support and policy recommendations for promoting the benign development of the trans-regional and trans-provincial trade market of electricity.