The Evaluation And Surveillance Of Market Power In Generation-side Electricity Market

With the reform of electrical industry all over the world, China also starts its electrical reform. Generation-side electricity market has been established. The objective of power system restructuring is to improve efficiency of electricity production, to lead the effective use of electricity resource, as well as to maximize the social welfare. However, because of the particularity of electric power system, the real power market is not a perfect competitive one but rather locational oligarchic market and the power suppliers often maximize their own profits by abusing market power. These behaviors will destroy normal market competition, hurt market efficiency and must be prevented by surveillance.The issue of market power is one of the most significant problems in the reform of power industry.Considering the actual situation of generation-side electricity market of our country, using relevant knowledge of the electricity market theory , Microeconomics theory and the game theory, This paper presents a comprehensive study of market power. The main contents include:(1) analysis of the causes,production mechanism and harms of market power;(2) study of the index for detecting and measuring market power;(3) study of methods for restraining market power;(4) introducing a useful surveillance system;The studies broaden there search scope of market power, and would offer theoretical foundation for the government's supervision department to make relevant policies.