Analysis Of The Franchise Institution In Public Utilities

The thesis analyzes the cause, measure, mean and policy in public utilities by investigating a typical natural monopolistic industrial - water industy. It tries to get fair and reasonable design for the franchise institution of public utilities.First, it focuses on the basic theory of franchise policy in public utilities and its systemic framework, then analyzing some examples of granting the franchise to foreign investor by state-owned water companies in China, trying to find out the shortcoming of franchise policy in public utilities and the governmental re-regulation of the market today. In order to rebuild the regulations and restrictions of franchise institution in public utilities in China, we have to change system and concept of governmental framework of the regulation thoroughly.Furthermore, based on the characteristics of water industryl, we put forward some detailed proposal for the government to solve those problems, such as how can the enterprises enter and quit the market, what is the suitable price for the contract and how can we calculate it correctly, and which structure is the best of water produce, etc. It is expected that they will be helpful to decision-makers of policy and provide some ideas on how to re-regulate public utilities.