Research on the Optimal Regulation Model of Electricity Transmission and Distribution Price

Abstract

The electric power industry is regarded as the basic industry of national economy, which makes it unable to get rid of the governmentpsilas regulation, as well as its own technology and economic characteristic. After reforming of regulation, government pays a good deal of attention to the performance-base regulation which has been used in telecommunication successfully and can solve the low efficiency problem effectively. But the performance-base regulation method cause the contradiction between efficiency and quality, so people call in query to its efficiency. On this background, after analyzing the price cap regulation method and considering the situation of power reforming in our country, the paper propose the optimal electricity transmission pricing regulation method which contains the factor of quality and also can solve the contradiction between efficiency and quality in a certain extent. Then the paper puts forward some suggestion on decision of parameters and makes study example of quality factor.