Electricity Sales Price Model Considering the Purchasing Power of Users and Their Regional Differences

In the initial stage of electric power marketization, the power supply enterprises are expected to participate in the market competition and engage in the public services as well. Meanwhile, the electricity sales price should be set by considering the interests of enterprises, users and all aspects of the society. Based on welfare economics theory, to take region as a unit and select the economic location entropy as the quantitative evaluation indicator of userspsila purchasing power, which should be introduced to the price elasticity of power demand to establish the electricity sales price model considering the purchasing power of users and their regional differences. Example analysis shows that, while maximizing the profits of power supply enterprises, the model is equipped with scientificity and rationality by enhancing the utility of users as well as the level of social welfare.