Research On Market Power In Power Generation Side Together With Government Regulation In The Context Of New Electricity Reform

The electric power industry has great influence on the smooth operation and development of the national economy.The market-oriented reform of the power industry is a worldwide theoretical as well as practical subject.Many countries and regions have made various beneficial attempts and explorations according to their specific national conditions.Many countries have generally implemented reform measures oriented by deregulation,breaking monopoly and introducing competition in the power market.At the same time,they have strengthened scientific government management of the power industry and constantly improved and perfected government regulations.The promulgation of ‘Document No.9' marks the opening of a new round of power system reform in China.With the release and implementation of six supporting documents,China's electricity market is making great progress and breakthroughs in standardizing market order,building a diversified,competitive and orderly power trading pattern and forming a price mechanism to meet market requirements.With the establishment of regional power trading platforms(such as Beijing Electric Power Trading Center.etc),a unified national power market has begun to take shape.In order to further promote the reform,to achieve the full competition of market participants and the efficient allocation of resources,it is imperative to break down the barriers to free trade,reduce market manipulation,expand trading scale,innovate trading modes and tools,and improve market pricing efficiency and trading flexibility under the scientific guidance and regulation of the government.In this paper,the market forces on the generation side of China's electricity market and the corresponding regulatory measures of the government are taken as the research subjects.And the theoretical analysis and empirical analysis are used to combine qualitative analysis with quantitative analysis.We can see from the practice of electric power reform in many various countries,although the power generation side is usually the first to bear the brunt in reform,and under the background of the new electric power reform in China,the business environment of the Gencos is also undergoing dramatic changes,but in history,the market power in power generation side are often lingering,and the possible integration of power generation and sale which may occur in the new electric power reform may breed new market forces.So,empirical research and Analysis on market power,welfare effect and regulation measures of power side manufacturers are helpful for government regulation departments to take corresponding measures and for promoting the smooth development of China's electricity market reform.Therefore,this study has a certain theoretical and practical significance.Firstly,this paper reviews the development process of China's electricity market reform,summarizes the natural monopoly characteristics of the power industry and the theory and practices of government regulation.Then,by estimating the relevant quantitative indicators,identify the current situation of market power of key public power generation enterprises and prove the existence of market failure.The data analysis shows that the power producers in China's current electricity market still have obvious market power,which means that the allocation efficiency of production resources on the power generation side still needs to be improved.Finally,based on the above discussion and data conclusions,this paper puts forward some pertinent suggestions for the development and reform of government regulation in China's electricity market in the future.