A Research On Government Regulation And Deregulation Of Chinese Power Industry

It is vexed topic on regulation and deregulation in economics study,or divide work between government and matket abroad. Since1980's, there has been undergoing regulation reforms on so-called natural monopoly industries such as electricity, railway transportation, piping gas and water supply around the world. The reforms aim at introducing competition into those industries to some extent and promoting their efficiencies and services. All of the practice has brought about great progress in industrial organization theories and dramatic changes in government regulation policies.Electric power is typical natural monopoly industry and controlled to government all along. so there are a great deal of issues. such as existing information asymmetry between manage institution and managed corporation, surrogate question on manage institution relativing to superior central government and so on. In particular due to restriction , it has fall out efficiency lowness and social wefare loss . what is called regulation invalidation namely.China has also been welcoming this chang tide in many years. There are some immature reforms have being done in telephone and power industries, And they are supposed to be positive. However, there will be a long way to go for China electricity in market-oriented reforms. First of all, the traditional planned regulation on electricity must be abandoned and a new regulator be created; secondly, a set of norms suitable for a new power market structure should be set up as soon as possible; thirdly but not the least, the recent stress would be put on market access, power tarifs, generators creation and grid company mechanism.By using industry economics and government economics theorys, the paper roundly analyzes some traits and sums up lessones about regulation and deregulation in electricity reform of the world and China. It finally brings forward effective government regulation suggestions.