Analysis On Regulatory Reform In Power Industry

Nowadays, regulatory reform in Natural monopoly industries is underway worldwide. The power industry in china has completed its dual-split and got some segmental achievement. In practice, it also has some deficiency, so a further reform is absolutely necessary. In the thesis, on the basis of analyzing the theory of traditional regulatory reform, a conclusion that the realm of natural monopoly is not inflexible and parts of it can be competitive is drawn from the relation between monopoly and the regulatory theory. Then after having compared and analyzed the historical background and practical process, the author summarized that monopoly and competition can coexist to provide reference for the reform in power industry in China. The conclusion is drawn that there still exists much malpractice in power industry in China based on the analysis of the past reform, the status quo and post-reform situation in the industry. In the light of the analysis, suggestion to the regulatory reform in power industry is proposed. At last, according to the reality of Chinese economy and the reform experience of foreign countries, a proposal is given on how to promote the development of Chinese power industry through competition. The specific measures are as following: disintegration of power industry, detection on natural monopoly industries and non-natural monopoly industries, further vertical separation of the non-natural monopoly industries to promote fair competition. For the section of natural monopoly, it is necessary for the governmental regulation. It is proposed that in power industry incentive mechanism should be implemented in the section of natural monopoly. Due to its important position in national economy, the measures should be taken by the government to secure the favorable progress of the reform, including legislative design, investing system, monitory system and macro-management system.