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On Quasi-Vertical Integration Dynamic Ownership of Power Industry

Xu Jiansuo1, Zhang Yanmin2 (1. School of Economics, Peking University, Beijing 1000871; 2 School of Economic and Management, Henan Normal University, Xinxiang, Henan 453007)  
Starting with the issue of property rights in the field of transmission and distribution, a kind of Quasi-Vertical Integration dynamic ownership of the transmission and distribution networks is designed, which guarantees economies of scale in the transmission and distribution fields, and achieves the cost reduction and the improvement of the economic benefits through a series of the laws and regulations introducing competition indirectly. More important, the QVI dynamic ownership can guarantee the safe operation of the power system and improve the electric energy quality.
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