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International Journal Of Engineering, Business And Management(IJEBM)

The cross subsidy of electricity price in China

Sen Guo , Lingrui Meng , Wenjin Li , Weifeng Yan , Li Wang


International Journal of Engineering, Business And Management(IJEBM), Vol-3,Issue-6, November - December 2019, Pages 97-103 , 10.22161/ijebm.3.6.2

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A new-round electric power system reform and electric power deregulation reform is on going in China. Of which, the transmission and distribution price reform has generated great impacts on electric power companies. Under this background, how to tackle cross subsidy of electricity price has become a burning issue in China. In this paper, the cross subsidy of electricity price in China is reviewed. Firstly, three categories of cross subsidy of electricity price are introduced; Secondly, the reasons for cross subsidy of electricity price are discussed in details; Thirdly, the impacts of cross subsidy of electricity price are analyzed; Finally, several policy implications are proposed for tackling the issues of cross subsidy of electricity price in China. This paper can provide references for policy decision-making of related government administration..

electricity price; cross subsidy; policy implications; China.

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