The Antitrust Regulation Of Abuse Of Dominant Market Position Of Electric Power Enterprises

The abuse of market dominant positions of electric power enterprises also knownas the abuse of the status of advantage in the market, which means abusing itsdominant position to limit competition and undermine competition. Such as monopolyprices, price discrimination of differential treatment which belonging to theexploitative monopoly, and refusal to deal, forced transaction, tying behaviors whichbelonging to hinder monopoly. The behaviors of the abuse of electric powerenterprises are consistent with the form of general industry market players. Of course,there are inconsistent form general based on its natural monopoly characteristics, suchas the behaviors of the denial of entry into critical facilities, cross-subsidies. Thenegative impact of these acts to the market is clear, effective regulation should besubject to antitrust laws.Over the years, the electric power industry is considered to be the traditionalnatural monopoly industry. The electric power industry is not subject to antitrust lawsbecause of its monopoly operating efficiency is higher than the efficiency ofcompetition. However, with the development of the economy as well as the needs ofthe development of the electric power industry, the electric power industry start tointroduce competition mechanism from2002.With the full implementation ofmarket-oriented reforms of the electricity industry, there are more and more abuses ofmarket dominant of electric power enterprises. Natural monopoly of the electricpower has changed because of the development of the theory of natural monopoly andreality technology and the market demand change. The field of power generation andsale of electricity is no longer natural monopoly, transmission and distribution areasstill exist to varying degrees natural monopoly. In the same time, the behaviors of theabuse of a dominant market position of electric power enterprises bring the lowefficiency of the industry, the drawbacks that hinder the advances in technology andthe lack of consumer choice. These defects require that the behavior of the abuse of adominant market position should be effective regulation of the anti-monopoly law.changes makes illegal monopolistic behavior of the transmission and distributionshould be included in the scope of the regulation of the anti-monopoly law, which isalso the anti-monopoly law to pursue fair competition and efficient economicefficiency as well as the inevitable requirement to ensure that the interests of consumers.The antitrust laws system which regulates the abuse of dominant marketpositions of electric power enterprises has been initially formed. There are twocategories: one is “the anti-monopoly law" which includes the Anti-UnfairCompetition Law, the Price Law, the other is “Industry Law" include electric law andthe law of regulation of the electricity industry. Categories have imperfections, theanti-monopoly law regulation is not enough, and industry legislation is difficult toachieve the strict norms and constraints on the behavior of the electric powerenterprise because of the limitations of departmental interests. There arecontradictions between Competition Law and industry regulations on the distributionof the application of the law and their respective law enforcement agencies.Competition law and industry in order to better regulate the behavior of electric powerenterprises in the abuse of a dominant market position need to be perfect.The regulation of the anti-monopoly law on behavior of the abuse of a dominantmarket position of electric power enterprises must distinguish between naturalmonopoly aspects and unnatural monopoly link. Because this is summarized abstractcharacteristics for various areas of the power industry, the validity of the regulation onthe basis of a deep understanding of the individual characteristics of the areas. At thesame time, the principle of effective competition can not be ignored, which is the bestresults between the economies of scale and competitive dynamic coordination. Andthe antitrust laws generally applicable exception exemption applies to the powerindustry, and improves the allocation of the terms of reference of their lawenforcement agencies as well as the provisions of the liability. The development of thepower industry is also urgent to re-amend the Electricity Act to safeguard theindependence, neutrality and authority of the Electricity Regulatory Commission. Ofcourse, the behavior of the abuse of a dominant market position in power enterprisesis subject to effective regulation of competition law and trade law, anti-monopoly lawenforcement agencies and the power industry Regulatory Commission shouldcooperate with each other. Strengthen regulation for the electricity industry unnaturalmonopoly power generation and sale of electricity, while the exemption for strongnatural monopoly transmission field structure, but its illegal monopolistic behaviorregulation, the distribution area which is the relatively weak natural monopoly shouldbe regulate on structure and behavior.