Institutional Analysis To Reformation Of Public Utility

Since 1970's, all countries have faced with the common situations of the increasing of the government financial budget, the inefficiency and monopoly of the government services. But with the increasing of the public's participant consciousness, the public didn't agree the government gave up much service. So reducing the government's direct intervention, adopting market mechanism, transferring the public services to the private are to be taken into account. The remarkable characteristics of the public provision of our country's planned economy are the monopoly in the public field, inefficiency of the provision of the pubic service, the serious bureaucracy, scarcity of fund, failing to achieve the objective of the revolution, the thought of cadre-oriented government, the fussy procedures of the government's examination and approval, rigid price mechanism, lacking effective supervision, and so on. In order to improve efficiency and benefit of public utility, market-orientation is the inevitable tendency of the public services.To avoid the rigidness of the municipal public provision and the service price mechanism and to resolve the problem of the lacking of interaction among the government, the enterprise and the consumer, the market-orientation of the public utility is transferring the ownership or the management of the state-owned public utility to private sector, with introducing market mechanism. Aimed to the present main problems in our country's public utility agency, the thesis reanalyzed and redefined the public utility. Aimed at simplex government system of the traditional municipal public utility, the thesis explained the attributes of some public service, the relationship among the provider and the producer of the public services and economic man,the reformation of the public utility and the change of the system, the reformation of the public utility and the market competition, the reformation of the public utility and the government intervention, finally suggested the polycentric public utility system──polycentric mechanism of the combination of the market, the government and the mediorganization. The reformation of the public utility has no uniform pattern. To take what kind of mechanism to provide services depends on the characteristics of the special public utility and the situation of the region. The last part of the paper made some advices on measures of the public utility reformation, such as father mode of public utility, varying the investor, licenced-operation institution, supervisory institution, guarantee on law, etc.