A Research On The Legal System Of Electric Power Regulation In China

An electric power regulation system has been emerging in China in tandem with the debut of China Electric Power Regulatory Commission. A perfect legal system is the precondition and foundation for electric power regulatory institution to implement effective regulatory measures. In recent years, along with fully exertion of the market mechanism, the electric power market has been improved gradually; therefore, the focus of the watchdog has been changing. While loosening its regulation on the competition section, the regulatory institution has been strengthening its check on network connecting in the natural monopoly section, pricing, security, environmental protection as well as universal services, thus to guarantee fair and orderly competition in the electric power market.The particularity of the electric power industry lies on not only its fundamental position but also natural monopoly in its key sections. It is especially necessary to intensify regulatory measures on the electric power industry, given the fact that even the optimal market competition mode could not totally overcome natural monopoly in some sections in the industry. To build modern electric power regulation system, it is needed to transform the functions of the government, to form new relationship between the government and enterprises, and to warrant full rights of enterprises to run their operations and to make investment decisions.With many imperfect aspects, China's electric power regulation system is still lagged behind that of developed countries. Since the 1990s, developed countries including the UK and the USA have been launching market-oriented reform to loose the regulation and adjusting the related legal system in the electric power sector, thus to combine the legal regulation theories with specific regulation practice. Though the UK and the USA followed different paths to implement their market-oriented reform, there are still some common experiences as beneficial references for China: to guarantee independency of the regulatory institution by the legal system, to bring the market mechanism into play to the greatest extent by inducting as many competitors as possible into the market, to distinguish the competition section and the monopoly section, to put all behaviors of the watchdog under the framework of the laws and regulation rules so as to reduce arbitrariness and uncertainty as much as possible.Modern regulation legal system is playing a significant role in guaranteeing smooth implementation of China's market-oriented reform in the electric power industry. In the reform process, the establishing of the watchdog as well as the related regulation legal system is still in its initial stage. Many problems are to be solved, while no matured experience and perfect governmental regulation theory could be followed. Therefore, it is needed to explore the following issues: How does the government implement its regulatory functions correctly? How does the government to adjust the behaviors of the market participants as well as those of the government itself? How does the government rationally take regulation legal measures to promote the electric power industry?Based on economic laws, especially competition law theories, and in line with China's current demand as well as international experiences, this paper analyses existing problems in China's legal system for the regulation of the electric industry, points out that it is a necessary and urgent duty to perfect the legal system, and provides some ideas on basic principles and specific measures to promote such a system. It does be the main contribution of this paper to give out particular and complete analysis on the above issues.