Study On Government Regulation Of Public Utilities Privatization

Public utilities privatization sparkplugs that private departments perform part of the function of supplying public service instead of government,which can improve the quality of public service.With the advance of privatization,the negative effects appear too.Especially in China,privatization results in some problems with too simple regulatory ways,lacking of incentives to private enterprises,ambiguous position of public-private contractual partnership and loss of public responsibilities, to name just a few,which make government regulation invalidation.As a result,the public interest and also private managers' interests are damaged in the process of privatization.So it is necessary to readjust the system of government regulation. Based on the above,the article focuses on two issues as follows:How does government role change and what it is going to be;how does the government establish a reasonable regulation system to promote a benign development of public utilities and protect the public interest.There are four parts in the article.The first part introduces the connotation, extension and character of public utilities,and then defines its category.The second part introduces the related theories,realistic background and legal basis of privatization in China.Then it discusses the negative effects of privatization and the adjustment of government regulation.It says that reasonable system of government regulation should be adjusted to the dual role of government.This dual system should include contractual regulation and administrative regulation,respectively based on the contract and the administrative power.The third part takes the contract as a point,and then discusses the public-private partnership of privatization and the system of contractual regulation based on the partnership.The fourth part explains the administrative regulation and mainly analyzes justification of administrative regulation.Also,it discusses the adjustment of the administrative regulation system. In conclusion,the readjusted government regulation system of public utilities should cut down the negative effects of privatization,meet the minimum interests of the main privatization bodies and pursue the maximization of the social welfare on this basis.