Transmission And Distribution Industry Reform Model And Path

This thesis looks at the industry reform of power supply enterprises, which is an essential part of Chinese economic reform. China has finished the structural separation of power production and power supply, and has introduced competition in the power production sector. Although it's a global trend for power supply companies to become more market-oriented, close attentions need to be paid to the potential risks, which could be caused by market failures and the conflicts between the characteristics of power industry and market-economy mechanisms.While the grid and power allocation sector are traditionally ruled by monopolies, it has become increasingly necessary to apply strict regulations to those big companies. The importance of effective government regulations is also discussed in my thesis. This thesis also analyses the optimal price by means of modern incentive theory given the existence the asymmetric information in the market.