A Study Of Electricity Transmission Pricing Regulation In The Power System

Although China have achieved certain results after the beginning of the electric power industry reform in the late1990s.Considering the experience of foreign practice in the same area, there is still need for regulation system reform to go with the electric power market reform. The frontier issue of regulatory reform is to search for a regulation mode that can make supervised enterprises to improve efficiency,as well as the social welfare, Therefore the study of optimal regulation model in china is of great theoretical and practical significance for the maintenance of normal market operation and the promotion of power industry regulation reform.1. Based on the Classification Computational method Analysis of the Electric transmission cost , a model of the cost function of electricity transmission is recommended with applying the method of Least squares.2. Based on the evaluation and comparison of the Monopoly cost pricing Marginal cost pricing and Average cost pricing , a new method of the cost pricing named Minimum Average cost pricing is recommended.3. Traditional regulation and incentive regulation modes are analyzed and compared with each other, including detail advantages and disadvantages of their effects on the regulated enterprises efficiency and investment, A new model of price regulation of electricity transmission is suggested.The new method solves the problem of consideration to both attracting investment and efficiency stimulation. Additionally characteristics of the method are making results stable, usable and flexible. In fact the method is a feasible price regulation fitting to the actual situation of China power market.4. Summary the study of the paper, and makes the suggestion of the later Research directions.