A Study On Restructuring Of International Electricity Industry And The Reform In China

The electricity industry is one of the important foundational industries and the public utilities that concern the national economy and the people's livelihood. It is also an important component of the national economy and energy industry. Since China adopted reform and opening-up policy, Chinese electricity industry has made remarkable achievements after over 20 years'development and made great contribution to the development of national economy. After the establishment of the People's Republic of China, the electricity industry has experienced three periods development. Though fundamental change of the national economic system has taken place in the process from planned economy to market economy, the administration system and style of the government to the electricity industry has been the direct administration style of multi-departmental, dispersive, slow and non-transparent for a long time. This old production relationship cannot meet the requirement of the socialist market economy and the reform and development of the electricity industry marketlization. It blocks the persistent and steady development of the electricity industry. With the global tendency of deregulation of the nature monopoly industry, the electricity industry in every country witnesses the reform of regulation. Some countries broke up the former central monopolized market structure and introduced the competition mechanism to reduce the cost and improve the efficiency, and it achieved good economic and society benefit. About 15 countries in the world so far have already finished restructuring of electric sector for the deregulation and introduction of competition. Their experiences of restructuring are greatly instructive for over 60 other countries that are undertaking the same reform.First chapter discusses the general theory of the electricity industry.Firstly in this chapter, I discuss the character of the electricity industry from the economic technique character, its monopolization character and the exterior character brought alone by the electricity industry. After that, I nail down the goal of the government regulation over the electricity industry, which is to ensure the steady development of the industry, improve the industry efficiency, and promote the construction of the national electricity market and the realization of the social goal. Lastly, I emphases some core regulated content of the electricity industry, including the regulation of electricity layout, admittance regulation of the investment, the electrovalence regulation and the environment regulation. Considered the harmony and unified development of the electricity, I bring the electricity layout into the content of the government regulation over the electricity industry, which is also a creative point.Second chapter introduce the evolution of the reform of the electricity industry.Firstly in this chapter, I briefly discuss the history of the reform of the regulation over the electricity industry in the West. After World WarⅡ, many countries like Britain, France, Germany, retrieved the electricity industry as state-owned and adopted integrative management model. As the time goes by, the state-owned companies appears gradually many demerits like no dynamic and weakening of internal prompting. It seriously damaged the efficiency of the reform of the electricity industry. From 1980s, a widely wave of the reform of the regulation over the electricity industry began to spread out in the world range. Affected by the reform of the electricity industry in the western developed countries, Chinese electricity industry is also exploring the regulation mode that possesses Chinese characteristic. This chapter mainly focuses on the reform history of the government regulation over the electricity industry in China, and particularly introduces the content of the latest round of electricity industry system reform in China. I also analyze the implement process of reform practice over the three years.Third chapter analyzes the current situation of the electricity industry in China.Though fundamental change of the national economic system has taken place in the process from planned economy to market economy, the administration system and style of the government to the electricity industry has been the direct administration style of multi-departmental, dispersive, slow and non-transparent for a long time. This old production relationship cannot meet the requirement of the socialist market economy and the reform and development of the electricity industry marketlization. It blocks the persistent and steady development of the electricity industry.Finally, I introduce the evolution of Chinese electrovalence and the current electrovalence policy.Based on the research and analysis of the current situation of the electricity industry in China, the last chapter provides the relevant policy suggestion. In the layout of electric power part, I suggest to establish feasible favorable policy to promote the optimization of the power supply structure. I suggest establishing and making up policies and regulations to secure the transmission-line system of electric power by investigating the safety issue of electric power system and consummating the mechanism to meet the emergency. In the investment of electric power part, I introduce the Decision on Reform of the Investment System issued by the State Council in July, 2004, and analyze the influence of the decision to the investment of electric power. I make some relevant suggestion mainly from examine and approve system of electric power item, how to promote the multi-entity of the investment main body, how to regulate the electric power investment by using some economic levers such as electrovalence and tax. In the end of this chapter, I introduce the content of the new round reform of the electrovalence and give the relevant policy suggestion by analyzing the difficulties and problems in the process of current electrovalence reform.