Government Regulation In The Privatization Process Of Public Utilities

Problems caused by privatization of public utilities, such as higher price and lower quality of product or service, interruption of service, non-universal service, etc. have increasingly attracted the concern of countries all over the world, and many scholars have begun to explore and resolve the problems from the perspective of privatization itself and government regulation. However, the privatization of public utilities should be a gradual process, which is far from enough to rely solely on the explanation of a few theories or simple use of several regulatory instruments. Privatization is a systematic process, having the division between pre-privatization and post-privatization. Therefore, the regulation of privatization should also be a scientific and systematic process of regulation. Only by constructing a system of regulatory system, can we achieve the well-ordered development of privatization essentially.Based on the logic above, this paper, first of all, theoretically explores the privatization of public utilities as well as government regulation in details, and then analyzes the current status and problems of government regulation in depth during the process of the privatization of China's public utilities. By comparative study of government regulation in America and Britain during the privatization, this paper aims to find some international experience for reference. Finally, in combining China's current government regulation with relative experience abroad, a specific solution is put forward. That is, to build a systematic and procedural institution for government regulation of the privatization of public utilities.The following conclusions has been made in this paper mainly through studying the issues above:firstly, at the beginning of the privatization, scientific and careful planning of the entire process of reform should be done, improving the relevant laws and regulations in legislation so as to ensure that the legislation goes first and there are laws to abide by; secondly, before the privatization, assessment and review of public utilities projects and relative enterprises should be made, scientifically enacting admission formula as well as fair and feasible concession contracts; thirdly, after the privatization, regulation of the enterprises in price, quality, universal service, and market exiting should be strengthened, not only being scientific and rational, but also covering all the bases with each item in control strictly; fourthly, relevant supporting systems should be established, and citizens participating system as well as independent regulatory organizations should be improved. It is only through a series of procedural regulation that successful privatization can be realized, and also the level of Chinese government regulation gets improved, which ultimately promotes the smooth progress of China's reform of public utilities.