Privatization And Governmental Regulation

Since the end of 1970s, many west countries begin to reform their mechanism of producing and supplying public utilities, in order to reply to the public criticism of low governmental efficiency in producing and supplying public utilities. The public believe that the better way of producing and supplying public utilities is relying more on private sectors and less governmental sectors. Under this kind of globe influence, china also begin to reform the producing and supplying mechanism of public utilities since the end of 1990s. There are two important problems that we should resolve in the process of the privatization of public utilities, according to reforming experience of public utilities in domestic and foreign countries. The one is whether or not we should put governmental regulation on the privatization. The other is the changes of demands for governmental regulation after privatization. For the purposes of putting forward which role the government should play in the governmental regulation, and make clear the area and content of governmental regulation that the government should take on after the privatization of public utilities, this article analyze the economic and technical characters of public utilities, and discusses the change of demands for governmental regulation after privatization of public utilities by analyzing a privatization case of a small tube burning gas company.