Price argument between coal and electricity needs marketized operation

In 2004, coal price was always soaring in China. The price contradiction between coal and electricity became more and more severe. To alleviate it, the government has promulgated Mechanism of Coal-Electricity Price Linkage, which allows electricity price to vary with coal price to some extent. The author considers the administrative price linkage as a temporary solution, though it can turn the two sides from opposition to strategic cooperation. The problem can only be solved through marketized operation and integrated regulation. In order to carry the policy into execution and avoid its bad affects, seven issues needing attention are put forward, for example, ensuring long-term validity of the policy, avoiding it to be a signal of markup of coal and electricity, and avoiding too frequent adjustment of electricity price. The contents of marketized operation are given from four aspects to settle the price argument between coal and electricity.