Abstract: It is necessary to establish a standardized investment review system for setting up a regulatory mechanism of pre-pricing investment review. And the core of the system is to set up the basis and method for scientific investment review, the incentive mechanism for investment cost saving and adjustment mechanism for investment deviation. The paper studies the problems in China in power grid investment regulatory policies and the international experience of investment review in such countries as Britain, Australia and the United States. Some reflections are proposed based on the existing reform conditions in China, such as continuous improvement of the regulatory investment policies through practice and establishment of a complete investment audit system, objective and fair regulatory policies, and practical and effective regulatory methods.

Key words: pre-pricing, regulatory investment, mechanism