The Study On Regulation Of Force In Power Market

Electricity as a special commodity, has strong relationships with People living and plants running, and especially ensures national economy steady running and society developing. The traditional monopolized power market system has been in the way of electricity industry developing. To stimulate electricity industry developing healthily, China has carry out a series of measures of reform with two aims of "splitting plants and nets" and "competing to go into the nets". By now, the first aim is realized, and it is plot out 2 huge companies of net and 5 groups of electricity generating in the whole nation.Because of limited nets coverage in huge wide area and high cost of long distance electricity carrying, establishing district power market is helpful to optimize resource allocation and add to social welfare. But the facts that imbalance of resource distribution and weak base of electricity industry and the scale economic character and high barrage of entering market and so on, cause the electricity generators in district have strong powers in district power market. And the generators take the advantage of information imbalance and strategic bid to realize their market predominance, which will result in high benefit by high electricity price. Because of information imbalance, the Two-Part Pricing System and the high limit of price method in practice is not able to restrict the noncompetitive behavior.Theory of Stimulant Regulation says that keeping the primary structure, and then stimulating companies in regulation to improve their efficiency. That is to say, competitive pressure and positive inducement of improving efficiency should be given to companies in regulation. Stimulant Regulation gives companies some privilege of pricing, and let them use information predominance and motivation of maximizing benefit to improve efficiency and reduce cost in initiative, as to get more benefit. In practice, to revise generator's quoted price, we could set up a competitive price system to make generators compete against each other, and then the quoted price will be closer to marginal cost.