Price-forming Mechanism and Price-fixing Model of Electricity Price Based on Demand Side

Currently, the demand side fails to play an effective role in the forming mechanism of electricity price. In terms of the problem, the paper put forward the opinion that both the demanding party and the supplying party should participate in the price formation mechanism, under which the final bargain price and electricity-consuming amount (or load) under such price are determined by interactions between quotation of the supply side and electricity consumption of the demand side. Furthermore, the price-fixing model base on the demand side is set up according to the price formation mechanism. The electricity price shaped under such model can reflect the actual balance of supplying and demanding parties, and assume a leverage role in adjusting the generation and consumption of electricity.