Research On Price Regulation Of China Power Industry

Along with the in-depth development of the market economy in China, it is imperative to reform the regulation in power industry, which is a traditional natural monopoly industry. As the electricity price is the lever and core content in electricity market, government reform on the regulation of electricity price is the key factor of the power industry reform.In this article, two researches have been done, which are also the two main innovations: first, through the analysis and study of the two main models of electricity price regulation adopted by various current governments, in light of the China's actual situation, it constructs the proper model of electricity price regulation suitable for China's national condition; second, through the analysis and study of China's power industry and electricity price, utilizing the economic principle and considering the characteristics of power industry, it proposes three factors that affect the electricity price: the government regulation, the coal price and the electricity demand. And then it has confirmed by examples and analysis that these three factors actually influence the electricity price.China's power industry is experiencing a significant transformation of industrial organization. In the future, China's power industry will develop into a brand-new system. This system transformation inevitably will request the government to carry on the corresponding adjustment to the electricity price regulation. Through the above analysis, this paper has attempted to propose some guidance and policy advice for the reform of China's electricity price regulation.