According to the requirements of the new round of electricity system reform and the features of Chinese electricity market, the transmission route of electricity price was put forward, and a transmission model was developed in consideration of the different voltage levels and user types. The transmission mechanism of power transmission and distribution cost in electricity price was established. According to the overall requirements of "allowed cost and reasonable profit", the cost allocation method based on virtual system capacity and the profit distribution method based on electricity amount were proposed. Based on the actual data of Shanghai Power Grid in 2015, the cost and profit distribution measures were determined for the different voltage levels and user types. In addition, taking the line loss as a dependent variable, its effects on the cross subsidy, the purchase cost and the sales price of electricity were examined.