The Current Situation Of Government Regulation Of Power Industry And The Strategy Of Optimization In China

The industry of electric power is the important basis industry, because of investing huge, asset specificity and scale economy; it has been considered the natural monopoly industries. Most countries in the world use the mode of state-owned and power generation, transmission, vertical integration of vertical monopoly operation of distribution and sale. However, with the development of technology and economy, some segments of the natural monopoly characteristic of electric power industry become weak; the reason of monopoly in economics has been challenged. At the same time, inefficient industry and the loss of social welfare are caused by the traditional supervision which is lack of competition and encouragement, producing the so-called the failure of regulatory. Based on the anglicizing the general theory of regulation, the definition of regulation and its development, at the same time summarizing the research status of the regulation theory of electric power industry, then pointing out the deficiency of study of power regulating. On the basis of China's power industry, we analyses the current situation of government regulation, give the problems of China's power industry and explore the underlying reasons. Finally combining the actual situation of our country, giving the strategies and advice, hoping that it can improve the effectiveness of regulation in power industry and promote the development of the power industry.