Default Electricity Pricing Model for Operational Users Considering the Cross-subsidy under the "Dual Track System"

• Published in: 2021 International Conference on E-Commerce and E-Management (ICECEM) pp. 270 - 273
• Main Authors: Li, Haiqing, Liu, Zhaoyang, Wei, Ning, Gao, Peng, Liu, Shixuan, Yang, Shuo, Guo, Sen
• Format: Conference Proceeding
• Language: English
• Published: IEEE 01.09.2021
• Subjects: Companies; component; Costs; Cross-subsidy; Default Electricity Price; Dual Track System; Energy consumption; Government; Power grids; Power supplies; Pricing
• DOI: 10.1109/ICECEM54757.2021.00060

When Chinese power grid companies undertake guaranteed power supply services, they must also comprehensively consider the issue of cross-subsidy on the power generation side under the "dual track system". This paper analysed the foreign experience of guaranteed power supply, and then design a default electricity price model for operational users, which includes four components named energy costs, cross-subsidies, network transmission costs (transmission and distribution costs), and government fund surcharges. The results show that: (1) The nature of guaranteed power supply in various countries is the institutional guarantee for the reliability of consumer electricity, not a social welfare; (2) Guaranteed power supply service providers usually include power producers and power retailers. Transmission and distribution network companies usually do not participate in guaranteed power supply services; (3) Considering that China has a dual-track system, it is necessary to introduce cross-subsidies in the pricing of guaranteed power supply services.