Study On Separation Of Main And Auxiliary Industries In State Grid Corporation Of China

Since the State Council put forward the four missions of the reformation of electric power system, China’s reformation of electric power system is advancing steadily year after year. It had accomplished a great deal during thirteen years. However, it also exposed a lot of problems, such as main- auxiliary separation is not complete, transmission and distribution separation reform is still no progress, and pricing mechanism is not perfect. he leading cause of these problem is that, main-auxiliary separation reform have not been completely resolved. Main- auxiliary separation reform is the precondition of the transmission and distribution separation reform, and transmission and distribution separation reform is the guarantee of a scientific and reasonable price formed mechanism. While thermal power construction enterprise, hydropower construction enterprise, electrical prospecting design enterprise and repairing of electric power equipment enterprise have been stripped out of the National Grid, but these enterprise’s economic benefit is not as good as other auxiliary businesses. In terms of the auxiliary businesses which are closely linked with main business, the National Grid still has no plan to rid them of. What’s more, the acquisition action of Ping Gao and Xu Ji is against to the reform. So, pushing forward the main- auxiliary separation reforms is the most imperative thing.This paper has reviewed the process of China’s reformation of electric power system in three major areas: process, achievement and problem. The main problem is the main- auxiliary separation reform have not been completely resolved, transmission and distribution separation reform is still no progress, the grid company have the right of electric trade alone. In this paper, auxiliary businesses are divided in detail, including uncommercial assets, electric supporting enterprise and diversified economic enterprises. The innovation of this paper is that introducing bidding mechanism into the process of disposing auxiliary asset. Detailed simulation of the domestic enterprises to participate in bidding, stripped auxiliary assets, the process of the thought of bidding results vary depending on the size of the market and the number of auxiliary dissection. And to analyze the effectiveness of the separation of state grid advocate complementary and welfare effect, said state grid company to advocate complementary separation can increase consumer welfare, which further increases the total social welfare. Finally, in combination with the obstacles which the national grid company will encounter during the main- auxiliary separation reform, this paper put forward some suggestions.This paper make up for the lack of study on main- auxiliary separation of grid company theoretically, also has widened and deepened the knowledge of main-auxiliary separation reform under the background of market-oriented reforms in practice. I wish this paper can provide some theoretical basis for the State Grid Corporation with the further main- auxiliary separation reform.