A method of reducing constraint of price regulation information asymmetry in electricity distribution market

Abstract

A method based on the method of independent component analysis is offered. It can reduce constraint of price regulation information asymmetry in electricity market effectively. Then it is applied to analyze cost of electricity distribution utilities and evaluate the productivity of electricity distribution utilities. As results, the regulation information is compressed effectively and the market information constraint to regulator is reduced also. At last this method is useful in the field of price regulation.

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