Basic: The Precaution Indices System for Electricity Market is a quantitative analysis method of significant meaning for the electricity market. It is a necessary mathematical tool helping the market supervisors to make decisions. Although the indices system varies according to the specific market, we can find a general principle and process for the construction of the system, which is the main purpose of this paper. This paper stands at the viewpoint of market surveillance committee and sets up a series of Key Performance Indicators (KPI) for market precaution. Then considering the practice of electricity market, it set up the KPI using to analysis the suppliers' behaviors. At last, examples of the precaution indices system are presented in the paper to illustrate the qualitative analysis process, and the applications of many multianalysis models, such as Cluster, Factor Analysis, Covariance Analysis, etc., are introduced to explain the quantitative analysis process.
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