Improvement Measures to Adapt to Cross-Subsidies across Various Consumer Categories in China's Electricity Spot Market

Given the historical development of China's electricity market, this article proposes several improvement measures to adapt to cross-subsidies across various consumer categories in China's electricity spot market. The proposed improvements cover three key areas: Calculating theoretical transmission and distribution tariffs by voltage class and consumer category based on the electricity consumption profiles of various consumers; building a model for calculating cross subsidies in electricity tariffs by voltage class and consumer category, utilizing a price differential methodology; building a model for balancing transferred cross-subsidies given the macro landscape of China's spot market. Case studies are conducted on the balance model to verify its accuracy and effectiveness of proposed measures.