The Feasibility Of The Shareholding Reform For The County-level Power Supply Enterprises

In the current reform of rural power system, most of the county-level power supply enterprises have still been supervised by provincial power company or city-level power company. This is an interim management mode. Under this mode, property rights of the enterprises are unchanged but their personnel, financial resources, and goods and materials are supervised by higher-level power companies. This mode is regarded interim in that it fails to establish modern enterprise management system. So it becomes urgent to explore a new management mode for the county-level power supply enterprises. This new mode must cater to the new circumstances of the economic and social development. In this paper, I provide a case study, which focuses on the county-level power supply enterprises in the city of ××. I perform comparative analyses of enterprise achievements under two different management modes: supervised by higher-level power companies vs. reorganized into holding limited liability company. By doing so, I draw a conclusion that the latter is preferred to the development of county-level power supply enterprises in ××, especially under the changing power system. This paper is developed with reference to new theories of share system reform, capital reorganization and financial evaluation. I hope it could be constructive in steering the reform direction for our county-level power supply enterprises, and if possible, can be applied to the resolution of practical problems.