Proceedings of the 5th International Conference on Economic Management and Model Engineering, ICEMME 2023, November 17–19, 2023, Beijing, China

Research Article

Regulation of Market Power in Australia and Its Implications for the China’s Electricity Market

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  • @INPROCEEDINGS{10.4108/eai.17-11-2023.2342692,
        author={Kai  Wang and Chunsen  Wang and Ming  Zhong and Na  An and Changhong  Wan and Jianheng  Shi and Baoyue  Wang and Xue  Yang and Siwan  Huang},
        title={Regulation of Market Power in Australia and Its Implications for the China’s Electricity Market},
        proceedings={Proceedings of the 5th International Conference on Economic Management and Model Engineering, ICEMME 2023, November 17--19, 2023, Beijing, China},
        publisher={EAI},
        proceedings_a={ICEMME},
        year={2024},
        month={2},
        keywords={electric market power; market power regulation ; pre-regulation ; generating units},
        doi={10.4108/eai.17-11-2023.2342692}
    }
    
  • Kai Wang
    Chunsen Wang
    Ming Zhong
    Na An
    Changhong Wan
    Jianheng Shi
    Baoyue Wang
    Xue Yang
    Siwan Huang
    Year: 2024
    Regulation of Market Power in Australia and Its Implications for the China’s Electricity Market
    ICEMME
    EAI
    DOI: 10.4108/eai.17-11-2023.2342692
Kai Wang1, Chunsen Wang2, Ming Zhong2, Na An2, Changhong Wan1,*, Jianheng Shi3, Baoyue Wang3, Xue Yang3, Siwan Huang3
  • 1: Huaneng Jiangxi Power Generation Co., Ltd.
  • 2: China Huaneng Group Co., Ltd.
  • 3: Huaneng Clean Energy Research Institute
*Contact email: wch1029@163.com

Abstract

This paper aims to conduct an in-depth investigation into the regulatory mechanisms governing the exercise of market power in the Australian electricity market and to explore the implications of these mechanisms for the regulation of the Chinese electricity market. Firstly, an analysis of the legal framework for electricity market regulation in Australia is presented, encompassing the registration of market participants and the establishment of regulatory bodies. Furthermore, the paper delves into the constraints on market power exercise by examining price controls and behavioral indicators of market participants. It introduces the steps involved in the regulation of market power forms in Australia and, in conjunction with practical operational examples, analyzes their effectiveness and challenges in ensuring fair market competition and preventing market abuses. Finally, drawing insights from the Australian case study, the paper presents implications for the regulation of China’s electricity market. These implications are aimed at addressing market competition, enhancing regulatory efficiency, and promoting the sustainable development of the market.