The Analysis Of Costs In The Reformation Of The Productive And Operational Public Utilities

Public utilities are kinds of special social organizations in our country, and had made great contribution to the development of various undertakings. But with the development of the socialist market economy, Public utilities are no longer adapted to the times. In2012, the introduction of "Guidance on promoting function-based reform of Public utilities", which was adjusted and modified around one year, clearly pointed that public utilities should be divided into three categories in accordance with the social function:engaged in administrative functions, engaged in productive activities and engaged in public service. the productive and operational public utilities were asked basically completed in2015. But the reformation is striking the sensitive nerve of all parties, how to ensure the smooth progress and effective implementation of the reformation, restructuring costs control will be the keyTo control the optimization of restructuring costs, we should clear connotation and constitution of the costs first, institutional change theory provides a research perspective for the analysis. Combining the practice of productive and operational public utilities, restructuring costs can be divided into design costs, implementation costs, friction costs and opportunity costs. Design costs mean the costs of policy planning. Implementation costs, which were caused by incomplete information, incomplete knowledge, include the costs of policy planning, contract renewal and knowledge learning. Friction costs root in the resistance coming from the objection of vested interests. Opportunity costs derive from the remaining prestige the old public utilities left when the new institution system is immature. Although the existence of the costs is inevitable, for the level of restructuring costs, society, government and the public utilities are not powerless. Institutional deficiency, path dependence, the way of system transition, interest game and the informal constraints influence the level of design costs, implementation costs, friction costs and opportunity costs interactively. To take advantage of these influence factors, cost optimization will be possible. In order to achieve the cost constraints, we should perfect the system of reformation, rationalize the way of system transition, apply informal constraints, and reduce the resistance of institutional change. Only by control the optimization of restructuring costs effectively, making greater revenues with smaller costs, we can implement the reformation of productive and operational public utilities smoothly.