Study On The Regulation Of The Electric Power Industry In China

In this paper we study the deficiencies and the application of the theories about natural monopoly and regulation economics in our power industry regulation, and propose regulation mode based on network quality, business costs and other information oversight with the actual situation.Along with social progress and rising living standards, electric energy, as part of social life, shows so increasing more importance, which improving the service quality of power industry and reducing the cost of electricity to run a business grow to be a very important element in social development. In recent decades, as many countries carry out their reforming policies in power system, regulation of electricity has gone through a rigorous and relaxation cycle, and there are also cases of success and failure. China's power industry also continues to progress and change, especially over the past decade, we have made great different that Electricity Regulatory Commission was established and power plant and grid were divided. However, because of the particularity of China's electric power system, especially of the natural monopoly of basic industries, all kinds of problems appear in the reform process, which is now on hold. According to the Theory of Economics Regulation, the reform like dividing the power plant and grid into two parts and making the free competition in power system available is very necessary, so is the regulation to increase the cost, investment, and power quality of the power industry, as the power industry has a natural monopoly.This paper describes the natural monopoly theory; analyze the power industry regulation theory and the problems in carrying out regulatory reform model and regulatory. It also analyzes the basic national conditions of China's power industry and the specificity of the power industry regulation, and proposes regulatory measures and the actual status quo biases based on the author's management experience and the feeling as a management of enterprise network, which presents that although China's power industry is a natural monopoly, it dose not only pursue monopoly profits, but also impede technological progress, and there are also phenomenon of staff redundancy, inefficiency and so on. We can also learn that China's power grid enterprises have diverse business objectives and great driving force to pursue reduced to increase efficiency and application of science and technology, and the analysis of relationship between China's power grid industry indicators, power quality performance evaluation and investment. We should improve several aspects of work in the power sector regulation, speed up the improvement of laws for regulation and legislation, increase efforts to control the investment and cost through the information disclosure of power grid enterprises, and promote the power quality through public oversight, and vigorously promote the mechanism of electricity transmission and distribution and sustainable development of power industry to promote the power industry to reduce costs and improve power quality to meet increasing demand for power quality of the public.Finally the paper presents conclusions and gaps and needs further study.