Research on the Disadvantages and Countermeasures of Cross-subsidy for Sales Electricity Price

Abstract

In the context of deepening the reform of the power system and advancing the marketization of power, how to advance the price reform in an orderly manner has become an important issue in the reform process. Due to excessive consideration of economic structural adjustment and subsidies for agricultural residents' electricity, the deviation between China's sales price and electricity costs is very common, causing serious cross-subsidy problems. This paper applied Ramsey pricing theory, social welfare net loss theory, and cross subsidy application conditions to analyze the problems caused by cross subsidy of electricity price in China, and proposed several ideas and solutions to cross electricity subsidy.