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A Study on Key Factors and their Conduction Path of Chinese Rural Residential Electricity Price

This paper reviews the existing Chinese rural residential electricity price policies, including their features and forming foundations, then analyses the main factors affecting the current Chinese rural residential electricity price by considering electricity generation, transmission and demands, respectively. With the gray relational analysis and the statistical data, the key factors currently affecting Chinese rural residential electricity price can be given as: the average of air conditioners per household, the average lending rates, rural residential per capita net incomes, natural gas price, price of coals for power generation, per capita electricity consumptions in daily life, total electricity consumption, total electricity production, electricity infrastructure investment and cross-subsidies in the electricity sector. Furthermore, the conduction path of the key factors influencing and deciding the electricity price is analyzed and a cause-effect diagram is produced with system dynamics software.