Market Power In The Power Generation Side Of The Market And Regulatory Study

In order to meet the requirements of the market economy ,after the establishment of the electricity market ,the power industry urgently need to break the monopoly, enhance operating efficiency. Within the word, the reform of the electricity market which had the main contents of "Separate factory and network, online bidding" began. In the process of reform, a competitive electricity market enterprises often can use means of accounting for a large share of transmission congestion,retention of electricity to raise prices to manipulate the market to reap super profits unreasonable. Meanwhile electricity regulatory departments need to analyze and assess the conditions of market operating, the strategy of generator, and develop appropriate monitoring systems and the corresponding regulation policy to ensure effective competition.In this paper, on the basis of aggregating the electricity market research, I study market power in generation side of the electricity market comprehensively. Revealing the causes of market power,the means to achieve it and the bad result . Then I explained the factors affecting the market in the market structure and network level aspects. So how to measure the market power, and which index can be used to measure .In this article ,I introduced the common measure index in three aspects as market structure, market performance, market supply and demand, and compared them. The PCM index which usually based on the market clearing prices condition was calculated simply . I use it do a simulation study to the generating market. The main part of the article analysis the market power in the market structure aspect. This part explains the process of electricity market evolution from low level competition stage to monopoly stage to reform of the electricity market stage. ,introduces the competitive bidding strategy, as well as the existing model, strategies and transactions. Since PCM data in the target market is a commercial secret, difficult to access, the text is a simulation study. I choosed CR and HHI index to analysis the overall market and China's Guangdong Province on behalf of the regional market for the empirical analysis of the potential market power. Through analysising, we know that China's market is still an oligopoly one, there is serious market power. The existence of market power leads to the need for regulatory power. Electricity regulation is a product of the reform of the electricity market ,and it should ensure the healthy development of the electricity market. Finally, I introduced the main method of monitoring power, the United Kingdom's successful experience . China can learn from United Kingdom. In view of the problems that exist in our power monitoring ,I proposed the corresponding policy recommendations.