Study On Regulation Of Chinese Electricity Industry And Price Regulation Model

The electricity industry was always considered as a monopoly industry.But the progress in technology and economy leads the loss of the reason in regulation.It is the mission to our government that the government as a regulator how to make alteration from all aspects of regulate ideas,government functional authorities,regulate organization and administrative actions.At the same time,not only we must follow the whole world tide of release regulate reform,but also we do not break away from the situation of our country.Then further promote the perfection and development of the socialism market economy in the sphere of natural monopoly industry.There is long history of Chinese administrative regulation on the price in electric industry.Before the reform and open up,the electricity prices fixed by state,for being banded up by planned economy system.This kind price regulation depends on political factor rather than economic factor,it is hard to stimulate enterprises' production effectiveness and the potential to maintain enterprises' development,and therefore,it is harmful to raise the apportionment effectiveness and the development of the electric industry.After the reform and open up,with high-speed development of the national economy,merely depend on the government investment in the electric industry cannot satisfy the increasing social needs to the electric power,for stimulating multiply investment,the state declared policies of regulating the price through return the principal and pay the interests,and regulating the price during the operation,to fix the regulated price depends on specific cost,that is to fix the regulated price depend on the electric projects cost and the revenue rate the permitted to the investor.This kind of regulation under the situation of that time, reduced the lack of the electric power rapidly,provided the guarantee for the development of the national economy.But at nowadays when the social economy system has been set up and improved gradually,the old regulate system show its shortage day by day,electric pricing mechanism is at the fatal time need to be reformed.This article studies the electric industry regulation and the price regulation in the electric power industry by government.Based on the regulation economics administrative prices regulations to the electric power industry in practice,this paper detailed discuss electric industry regulation,particularly price regulation.Firstly,on the basis of analysis for development of government regulation theory and the application in the power market,the paper analyzes the evolvement in government regulation in the electricity industry,the problems of it and the development trend of this industry, then,in the aspect of price regulation,we discuss the model of price regulation from generate electric power enterprises' price regulation model and sale electric power enterprises' price regulation model.Based on the practical situation of our states,draw lessons from the experience in regulations gained by developed countries,lead the price regulation model affect the needs of electric effectively.The paper studies the regulation polices for Chinese power market according to the analysis above.