Chinese Utilities: Private Enterprises To Enter The Pro-poor Regulatory System

The purpose of this paper is to explain the leading problem of public utility in China by now . A feasible reform means of public utility is to design public-private-partnership and set up pro-poor regulation mode in order to deal with these problems.There are some conclusions in this paper:1 , Government regulation is the main assignment of public governance. The government has to carry out some pro-poor regulation. Pro-poor regulation, broadly defined as protecting poor customers, irrespective of where they are or who serves them, therefore calls for several departures from the way regulation is traditionally conducted, that means low price or free partly being offered to the poor. 2, The principal of all the regulations on the private enterprise is to intensify the regulation on Universal Service, and pro-poor price regulation is also very important which includes feasible rate level and flexible rate structure such as life-line rate, increasing or inverted meter rate, two-part tariff, peak load rate and so on. Furthermore, variable service quality standards and competition regulation is the material content of pro-poor regulation.3, Providing subsidy delivery to the poor could improve their ability of consuming public goods and service. Subsidy delivery includes price subsidy and cash subsidy. It feels out that cash subsidy is more efficient to realize the fairness because it aims out the target group, nevertheless price subsidy means all the people could enjoy the benefit. Besides this, setting up Universal Service Funds between all the enterprises is a good method.4, Making regulation pro-poor requires an unattached regulatory body to keep separately from other sections. Set special regulatory institution could perfect the function and enhance regulatory ability of the regulatory bodies. Furthermore, regulators need to be regulated to ensure the justness of the regulation. 5, A kind of mechanism of regulatory promises should be set to guarantee the stabilization of policy . In the process of regulatory enforcement , public decision-making should be held court to enhance the appeal right of the poor, besides this, information and quality regulation, the law on the public utility also be urgently needed.6, Pro-poor regulation raises many challenges, both for the design and the practice in China.