An Analysis On Administrative Monopoly Of Chinese Electricity Industry And Its Influence On Efficiency

The electric power industry is an important basis for the national economy and is playing a powerful role in propping up and radiation to development of the entire national economy since China's reform and opening up, especially the recent 10 years,, Chinese government has adopted a series of market-oriented reform measures to reformThe traditionally vertically integrated monopoly electricity industry,and has achieved some success, but the basic pattern of government administrative monopoly and long-standing problem of low efficiency had not fundamentally changed, the role of market allocation of resources is far from being brought into play so far. Analysis the question objectively and proposing correct reform policies of electric power industry, arae both important to the healthy work of the electric power industry and the entire economical system. This paper attempts to use the economic methodology and economic judgment to analyse the administrative monopoly of China's electric power industry theoretically and emprically, and proposes the policies of anti-administrative monopoly of electric power industry in China in the transition economy on the basis of research.Firstly, in the aspect of measurement, this paper defines the concept of administrative monopoly in the electric power industry, and adopts the ISCP index system to assess the degree of administrative monopoly in China's electric power industry based on electric power industry's general characteristic. Through assessment, this paper draws the following conclusions:(1)China's electric power industry presents an obvious characteristic of administrative monopoly, that is, the monopoly is the administrative monopoly essentially, rather than the natural monopoly. (2) The Chinese electric power industry has different type and degree administrative monopoly in different sector. The industrial administrative monopoly and the local administrative monopoly are interweaved and coexisting in the electricity generation sector. The industrial administrative monopoly is shown as the electricity generation project examination system under state-owned property right monopoly, and the local administrative monopoly is shown as the barrier between the province. The power transmission sector and the distribution sector display natural monopoly nature in technology,but simultaneously have the administrative monopoly feature, and the administrative monopoly and the natural monopoly are interweaved in the same place. The electricity selling sector only appears to be the industrial administrative monopoly. Compared to the power transmission sector, the distribution sector, the electricity selling sector, and the electricity generation sector show weaker degree of administrative monopoly. (3) The degree of administration monopoly in electric power industry of China is in dynamic evolution. With the reform deepens gradually, the degree of administrative monopoly in the electricity generation sector is getting weaker, but the power transmission sector, the distribution sector, and the electricity selling sector still maintain high degree of administrative monopoly.Next, in the aspect of theoretical analysis, this paper analyzed the conduction mechanism of administrative monopoly of electric power industry influencing the efficiency of resource allocation. The administrative monopoly has dictated the electric power industry's market structure and the property right structure, and have the important influence to the enterprise behavior.Through the market structure, the property right structure, and the enterprise behavior, the administrative monopoly has dictated the industrial performance, and then caused the low efficiency of resource allocation.Thirdly, from the microscopic aspec,the empirical analysis demonstrates that high concentration degree of state-owned stockholder has had the negative influence on the electric power industry microscopic efficiency. From the industrial aspect,the electric power industry electricity price increases much higher than the industrial product producer price,and the electricity price structure is in distortion, moreover the electric power industry obtained monopoly profit. From the macroscopic aspect,the electric power industry staff earns high income, causing the income differential among different industries to expand unceasingly. The electric power industry investment efficiency is low, and the government investment is insufficient, so that the electric power supply in long-term is inadequate, which has hindered the electric power industry healthy development, and also has the serious negative influence to the national economy. From the aspect of dynamic efficiency aspect, the electric power industry innovation and the technology advancement speed is slow, and the dynamic efficiency is low. Therefore the conclusion is that the administration monopoly of the electric power industry has the negative influence on microscopic efficiency, the industrial efficiency and the macroscopic efficiency.At last, from the aspect of policy research,in the long term, the administrative monopoly will do harm to the development of electric power industry and the whole economy. As a result, it is necessary to counter the administrative monopoly. The concrete policy suggestion is as follows:Further deepen electric power industry's marketability reform, and build the marketability mechanism of pricing. Relax to access of privately operated capital market, and introduce competition to the market, and exert the external competition pressure to the state-owned electric power enterprises, and promote their reform. From the aspect of Corporate Governance introduce modern enterprise system, and carry on the stockholder's rights transformation and optimize Corporate Governance. Strengthen and consummate the Regulatory committee's function of the electric power industry.