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Study on Competition of Power Industry in China

Qi Yudong & Zhu Chenzhang  
This paper studies industry organization mode of power industry in foreign countries, makes a dynamic description of change in industry organization of china' s power industry, analyze and criticize the reform mode of horizontal and vertical separation, concluding that power industry is a typical natural monopoly industry, suitable monopoly operation system is necessary. The separation between generation and transmission is a kind of goal and direction but not the only goal and direction of power reform. About the separation between transmission networks, because of its nature of natural monopoly, not only should not be separated, but also need to be integrated. Integrated transmission networks favor cultivation and development of power market based on its stronger transmission body and stabilized technological support.
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