Water Supply Price Regulation Under The PPP Mode

As Public Private Partnership(PPP)grows in water supply industry, private capital joins in the water supply industry, private enterprise becomes the investment subject and business operator, and water supply industry switches from government operation to market operation. The tri-element structure of government-private-public replaces the classical dual-structure of government-public in water supply industry. However, due to the non-competitive, non-excludable, positive-externality and monopolistic nature of water supply industry, water supply price mechanism is unreasonable. The water supply price mechanism must change from government-decide model to government-market-jointly-decide model. In the process of determining the water supply price, private enterprise should have more autonomy. It is necessary to discuss how, under the circumstance of Public Private Partnership, water supply price mechanism can balance the interests among government, private enterprises and the public. This paper is divided into four parts(the introduction section not included):The first part: The basic theory of water supply price regulation under the PPP mode. This part introduces the PPP's implications, nature and price regulation. Water supply price regulation under PPP mode has three features: the complexity of law relationships, the natural monopoly and irreplaceability of price regulation object, and the pursuit and realization of public interest.The second part: Investigation on the current situation and problems of water supply price regulation under PPP mode. This part investigates the current situation of water supply price regulation under PPP mode and presents current legislations regarding price regulation. Then, it points out some problems in water supply industry under PPP mode. First, private enterprises' dual goals lead to interest conflicts. Second,government regulation system on price is not complete. Third, protection system of public rights is not mature.The third part: International practices of water supply price regulation under PPP mode. To provide references for China's water supply price regulation under PPP mode, this part presents the legislation status, regulators and regulating principles in the United States, Britain and France.The fourth part: Recommendations for water supply price regulation under PPP mode. First, this part clarifies the objectives and principles of water supply price regulation under PPP mode. Then, according to the existing problems in the water supply price regulation under PPP mode in China, this paper comes up with recommendations from three perspectives: improve government's supporting system, protect public interest, and clarify obligations of private enterprises.