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The electricity industry is the most important basis for the energy industry in the development of the national economy, industry focus and advance the country's economic development strategy, the development of the electricity industry has played an important role in promoting the development of the national economy and social progress. A long time, have some special properties of the power industry, electric power industry has been defined as a typical natural monopoly industries, the world of electricity industry mainly taken the state monopoly operating mode. However, with the economic development of electricity, the natural monopoly of the electric power industry decreased, the original monopoly mode can not meet the requirements of power industry development under the new situation, the long-term accumulation of deep-seated contradictions and problems are gradually exposed, restricting the further development of China's electric power industry and power allocation of resources and improve operational efficiency. In order to improve the operational efficiency of China's power industry, to improve the welfare of the community, and to study the mode of operation of the power industry facing the development of the power industry and the whole country has an extremely important significance. This paper describes the power industry natural monopoly theory, the theory of regulation and competition theory to provide a theoretical basis for the thesis. Then outlines the four operating modes of the power industry, analysis of the advantages and disadvantages of the different operation modes, and foreign electricity industry operating models are introduced. Then introduced the Evolution of China's electric power industry, operating model, the defects of the existing operational mode of China's electric power industry, and then analyzes the existing market structure of China's electric power industry, the use of regulation theory and competition theory to the analysis of the system of China's electric power industry. Finally, come up with strategies to enhance the effectiveness of the operation mode of China's electric power industry from regulation and competition angle. The market is the best way to configure resources, competition in the market, however, will bring to market failure, the need for government regulation, the regulation will bring about regulatory failure, you need to compete supplement. Goal to improve the operational efficiency of China's power industry, from the market structure of the electricity industry, efficient operation mode of China's electric power industry, the use of regulation theory and competition theory. Research and its conclusions, the operating mode of the power industry to help people know more about the operation mode of China's electric power industry, the power industry to address different aspects of the different levels of regulation and competition, competition and regulatory balance China's electric power industry, the best means for effective operations.
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