Study on the Linkage Mechanism of Coal Price and Electricity Charge

A theoretical derivation is conducted in this paper on the linkage relationship between coal price and electricity charge assisted by a case study. The result shows that coal price fluctuation can drive the power price fluctuation directly, which shall be mitigated and directed timely. As the coal-electricity linkage is a transitional mechanism, the retail price can not timely reflect the increase of power generation cost and be adjusted when the coal price rises. Reform of electricity charge shall be deepened in the next phase so as to create a market pricing system of coal-electricity price linkage.