The Research On The Problems Of Price Regulation Of Water Supply To Citizen

This paper will study on the problem of the price regulation of water supply to citizen, which has not completely gotten its goal, and put forward the suggestions of fulfilling the price regulation. Based on the citizen rights of using water, the development of the water supply enterprises and the water resource situation, combining with the environment of current economic reform in our country, now there are three aims to the price regulation of water supply to citizen: to protect the public interests of using water, to stimulate the development of water supply industry, and to save the water resource.Water supply to citizen belongs to a kind of daily necessity, the price elasticity of its demand is very small, so citizens can't get a lower price through choosing the enterprise of water supply voluntarily. Meanwhile, the enlargement of the supply capability of the industry usually needs huge investments and suitable profit rates. What's more, our country is short of water resources. Therefore, the regulation of water price should balance the relationship of the above three points.This paper takes Guangzhou as an example, begins at studying and discussing the regulation problems of water, analyses the reasons of these problems. First, lacking the scientific basis on how to fix the price of the water supply to citizens. Second, the monopolistic operation of the water supplying enterprises forms not merely because the natural monopoly characteristic of the industry. More importantly, it is the administrative monopoly that forms by the unclear line between the functions of the government and enterprises. Third, the regulation system of water supply to citizen lacks effective mechanisms. Then the paper uses the beneficial measures of the price regulation experience in America, British and Japan for reference, combining with the concrete situation in Guangzhou, puts forward how to fulfill the regulation system of water price, so as to ensure the high quality and efficient water supply to citizen.