『Abstract
　Despite three decades of reform, the electric power industry in China is still organised by a partial reformed plan system, where the investment to build capacity has been liberalised, but the prices and the production remain controlled by the state. This paper examines the pricing behaviour of the power supply in China, where the state attempts to balance the interest between the public and the electric power industry. The empirical evidence shows that the cost factors are critical to the electricity pricing in China, and that the bargaining mechanism, which sets the plan price, allows the power producers to face a soft budget constraint on their own costs.

Keywords: Electricity supply; Pricing behaviour; Power generation』

1. Introduction
2. Structure of China's power supply with reference to the UK
3. How is a plan price formed?
4. Estimation of the pricing model
　4.1. Estimated models
　4.2. Data description
　4.3. Estimation and interpretation
5. Conclusion
Appendix A. The equilibrium structure of the on-grid prices and the end-user price of Chinese power supply
Appendix B. The bargaining mechanism of the electricity supply in China
References