Study On The Regulation Of Chinese Electricity Industry In Economic Transition

Being one of the most important infrastructures, Electricity Industry plays an important role in national economic development. Its economic feature decided that it is an important area regulated by the government. In this transition period, the preliminary situation of the deregulation and re-regulation of China's electricity industry is different from that of western counties. therefore, if we only follow the philosophy adopted by the western economists when studying the electricity regulation to solve our industry regulatory problem, we will leave behind a lot of issues that we should study and solve. Furthermore, it will also confuse the feature the problem between western country electricity industry regulation and what we are facing in this area.This thesis stayed focus on the key words of "transition period" and "electricity industry", basing on the industry character of our electricity industry and from a systematic point of view, used institutions economics, regulation economics and politics theories to analyze what to regulate and how to regulate the electricity industry during the special period of deregulation and re-regulation in China's electricity industry.It is the first time that a thesis adopted the institution theory to systematically clarify the changes in electricity regulation since the reform and opening. It analyzed the driving force of the changes in industry regulation, and pointed out that the current industry regulation had obstacles in regulation authority, capability, object and target. Base on that, the thesis raised the 4 main tasks for the re-regulation of industry regulation: property right reform and restructuring to meet the challenges, categorized regulation based on industry feature, progressively promote motivational electricity pricing regulation and establish regulated reform system. To ensure the government regulating can be optimized, the thesis established an evaluation system for the operation of the industry regulation, to have dynamic evaluation on the status of the government regulatory operation.The thesis also raised a series of policy suggestion on how to fulfill the 4 major tasks for re- regulation.On restructuring, during the current stage, in those regional electricity market in developed regions with more advanced technology and complete electricity network,the wholesale bidding module can be adopted, while in other regions, just to adopt single buyer market module. On property right reform, through multiple investment in principle part to guide the entrance of private equity, foreign investment and strategic institutional investor to achieve multiple property right, and help with the separation of politics & business, politics and capital of the electricity industry.For the regulation content, the content during the transition period need to be in line with the industry character and features of the transition period, to have categorized regulation for non-natural monopolized area and monopolized area, and to enforce socialized regulation.Talking about progressively promote motivational regulation, it is suggested to establish coal & electricity linkage mechanism, to gradually solve "one plant one price" and take 3-step approach for price bidding, and establish a motivational regulating approach that fit in China's situation, and adopt gradually launches.To solve the issue of regulation failure, it is suggested to introduce the concept of governance into the government regulation process, and to establish internal & external regulatory mechanism within the industry. In order to establish internal regulatory mechanism, it is necessary to clarify the attribute to define the industry regulation organization, and to establish healthy regulation organization system, properly allocate authorities. The establishment of external regulation mechanism is to establish a systematic external biding power during the industry regulation process, which includes the establishment of public involvement mechanism and the optimization the legal system for electricity regulation.Electricity Industry government regulation operation evaluation system is to evaluate from the two dimensions, that is, regulation process and results. The regulation process is mainly to review the degree of independence, participation, powerfulness, almsgiving, transparency & boundary. Regulation result is mainly the degree of structure, potential, efficiency & sustainability. AHP is used in this thesis to do objective evaluation, and to establish relevant evaluation module, through expert research approach to define the weight of each indicators. It firstly brought up the concept of "government regulating operation index" and its calculation module as the comprehensive evaluation indicator to measure China electricity industry government regulating operation status.