Practice of “Reference Electricity Price + Floating Mechanism” in Yunnan Electricity Market

Since the reform of electricity market in Yunnan province, Yunnan has continuously explored the price formation mechanism and improved the electricity market. Among them, the marketization pricing mechanism that has the widest scope and has a great influence in the whole country is the "Reference Electricity Price + Floating Mechanism". This paper discusses in detail the existing price linkage mechanism in Yunnan electricity market, compares the scope, advantages and disadvantages of different mechanisms. It shows that it can play a role in market allocation resources in a larger scope, and realize the "can rise and fall of the transaction price". The practice of Yunnan's electricity market shows that this mechanism can not only stabilize market prices, but also further expand the scale of transactions.