services and trading platforms. The purpose of
the three improvements is to change government
functions and build an effective regulatory system for the power market. The purpose of
transmission and distribution price reform and of
deregulating investment in distribution is to
improve regulation of the power grid—the
physical basis of the power market—and facilitate the development of distribution networks
(Fig. 26 and Table 7).
Fig. 26 Competition in the power market before and after reform
Table 7 Measures, objects and purposes of the new round of power system reform
Measure
Object
Purpose
Deregulate price in competitive fields
Price
mechanism
Build a market price mechanism
Lift control of sales and power generation
Competition
mechanism
Build market competition mechanisms in
generation and sales
Make power exchanges relatively independent
Trading
platforms
Equip the market with fair and efficient
trading services and trading platforms
Strengthen government regulation and power
planning; make power supply safe, efficient and
reliable
Regulation
Change government functions and build an
effective regulatory system for the power
market
Reform transmission and distribution pricing,
deregulate investment in power distribution
Physical basis
of the power
market
Strengthen regulation of the power grid—the
physical basis of the power market—and
facilitate the development of distribution
networks
504
S. Yaodong and A. Gillespie