A refined regulation model for incentive regulation of electric power transmission and distribution

After the reform of the electrical power industry, the vertical integration management control method has been accepted by the electric power transmission and distribution firms in China, where necessary supervision and control are needed. In this paper, the author firstly investigates the existing research studies and the current regulation methods of international electric power market and then proposes a refined regulation model by considering the particularity of the electric power transmission and distribution enterprises in China. The paper mainly introduces the establishment of the algorithm and formula, and identification of the quality factor for the proposed model.