Methods of Preventing Collusion of Generation Enterprises in East China Electricity Market

The electric power industry organizational reform in China has achieved remarkable progress. In such a critical period of electricity market development and reform, it needs to avoid the risks brought by power generation enterprises exercising market power and manipulating market prices. Collusion, which is one of the behaviors of power generation enterprises to exercise market power, is more unfavorable to market competition. This paper proposes specific methods and rules to prevent the collusion. The goal is to disturb and stop the redistribution of profits among collusive generators. And the methods can provide a reference for the formulation of electricity trading rules in East China Power Grid.