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The importance and necessity of economic loss evaluation of power quality is discussed in the paper. In order to scientifically evaluate the economic loss of power quality indexes, the idea of meaningful classification of power quality problems is emphasized and the quality loss function is introduced into the evaluation models. According to the characteristics of continuous power quality problems, all indexes are divided into two intervals, namely qualified and unqualified, and evaluation methods based on quality loss function are proposed to calculate the economic loss caused by the exceeding indexes. In addition, effects of event-based power quality problems are fully considered, and their direct and potential economic loss evaluation models are determined according to their influence. On this basis, the concept of selective treatment of power quality is proposed, which solves the balance problem between technical and economic efficiency. It has highly practical operability and a light application prospect.