Regulation Of Transmission And Distribution Sectors Of China's Power Industry

Power industry is an important infrastructure industry,which influences society greatly,and its technology characteristics are complex,and its control contents of government is abundant. The control and competition problems of power industry are hot topics in the area of industrial economics,it is also focus problem of electric power system reform in China,and the control of power price is emphasis and difficulty.For a long time,power industry was operating in vertical monopoly utilities that supply electricity to customers within their franchised areas of service,and was controlled strictly by government. With the study development of technology and network economy theories,this traditional idea that the whole power industry is natural monopoly industry is taken more challenge. Since 1980's,many countries have implemented electricity deregulation reforms. The subject of reforms is to introduce market mechanism, to distribute resources by competition,privatization and price mechanism,and to improve resource allocation efficiency and enterprises'internal production efficiency. The main way is to separate generation,transmission,distribution and sale of electricity,with introducing competition in generation and sale fields,while introducing incentive regulation in transmission and distribution fields in order to achieve regulation reconstruction.This paper is just based on the research achievement of power industry regulation at home and abroad, with applying such knowledge as industrial economics,regulation economics, econometrics and the like,researching the problems of economic efficiency in Chinese transmission and distribution power fields and the incentive price regulation problems.Firstly,the paper discusses the characteristics of transmission and distribution fields and assure their natural monopoly features,which is the basis of regulation by government. Besides,the author introduces the development of regulation theories,which is the theory basis of this paper. Secondly,the paper introduces many price regulation modes which are popular nowadays and makes comparison among them,with the experience at home and abroad,proposes the reference significance to the choose of transmission and distribution mode in China. Thirdly,the paper introduces the reform history of Chinese power regulation,what's more,it introduces the present situation and problems of transmission and distribution fields. At last,the paper establishes a proper mode applied Chinese transmission and distribution fields,and makes the summary introduction of the DEA-based benchmarking in order to use the results to determine the X value of efficiency factors,which resolves the asymmetric information problem and makes the mode both have theoretical and practical significance.