In the view of general equilibrium theory in electricity market， by describing the relations between the general equilibrium theory and decision model of electricity market， the competitive equilibrium model of electricity market is established with two commodities（the active power and reactive power）， and solved by equal price method. Reactive power biding and pricing are analyzed in two-commodity electricity market， and the differences are indicated between nodal price theory and general equilibrium theory. The case study is made on IEEE-30 system， and it is proved that general equilibrium which is regarded as a basis in electricity market pricing is widely existent.