Study On Bid Strip Of Electricity Supplier On The Combinatorial Effects Of Market Power Indices

With the fast development of electricity markets, the problems of Market Power from the market participants become more and more important. In this paper, on the base of analysis on many ways in the world to evaluate market power, a new solution is established that considering all kinds of factors and the Market Power and bid strip of electricity suppliers is studied.The paper fist introduces the background of the reform of electric industry on the world, the restructuring of the power industry, the causes and current situations of China electricity market, the reasons and effects of Market Power in electricity market.In order to analyze the problem of Market power, this paper discusses the characteristics, the content and the impressed factors of Market power, in detail. Different kinds of Market powers in electricity market are classified. The virtues and defects of all methods are described. By introduce supervise of Market Power in the world, the paper points out that how to deal with the problems of market power is definitely important.This paper presents a new method to evaluating the Market power —combinatorial effects of market power indices, to evaluate the electricity suppliers' market power by assessing market power indices of all participants or only of themselves'. At fist, from the view of electricity suppliers, five indices methods (HHI, DHHI, MRR, Lerner, MPC) are used to analyze their competitive status. These indices are classified as ex-analysis and pre-analysis. Different market power indices reflect different factors, and the coefficient of main factor decides theeffective degree of this factor. From synthetically analysis in many factors, an integrated index is brought forward for market power evaluation. The integrated market power index affect the bid range which electricity suppliers use it to bid rationally.Two simply examples are illustrated, From results of the two examples we know that we should analyze market power in many factors, and draw out a constructive conclusion by making a comprehensive evaluation.