Study On Risk Evasion In Electricity Market And A New Regulatory Model For Electricity Price Cap

The reform on electric industry is the necessary request of development. The introduction of market mechanism can effectively increase the operation efficiency and optimize the config of resource, but accompany with the increase of uncertain facts, the electricity market participants will face more risks of profit lose which can also do harm to the secure operation of electric system. Thereby, the issue of establishing an effective mechanism to avoid the risk in the electricity market need to be studied and solved urgently so as to make the reform further proceed smoothly.This paper first studies on Risk Identification in electricity market based on the special characteristic about electricity. According to the fierce risk on fast fluctuation of electricity price faced by electricity market participants, this paper tries to introduce the mechanism of insurance into electricity market. Through the explanation of the principle of applying revenue insurance to electricity market and the calculation results for practical data from a certain provincial electricity market, it is realizable to decrease the operating risks of power generating enterprises by purchasing the income insurance, and this method possesses good prospects.Further more, in order to evade financial market risk, a new electricity trade mechanism and its formula are presented based on futures market.The functions of the administrative structure are correspondingly determined by the market structure and the degree of competition level. Because of the shortcomings in the original administration before the reform and according to the inherent monopolization in the power transmission and distribution, a new performance based price regulation mode (PBR) is led into this paper and the price cap regulation in this mode is analyzed in detail.