The Research And Analysis On Pricing Mechanism Of Public Utilities With PPP

In 2015,the State Council of China promulgated “the Administrative Measures on Franchising of Infrastructure and Public Utilities”.“The Administrative Measures on Franchising of Infrastructure and Public Utilities” creatively stipulates that "a franchise agreement shall include a mechanism for determining or adjusting prices or fees." The “Price Law” introduced in 1998 stipulated that: Under the macro-control,the state will gradually implement a market-based price formation mechanism.To set the prices must be based on the value,and the prices of most goods and services should be regulated by the market.The price of a few goods and services is decided or guided by the government.It can be said that the “the Administrative Measures on Franchising of Infrastructure and Public Utilities” set a gap in China's price law system in the pricing regulations,allowing companies and the public to share part of the pricing power in the "infrastructure and utilities" field.That is commendable.Because of its indiscerptibility of utility,non-competitiveness of consumption,and non-excludability of benefits,public utilities determine that public goods cannot be completely supplied by the market like private products.It also determines that the prices of public goods cannot be determined entirely through the market.Traditionally,public products are supplied by the government,as well as prices are enforced by companies,and prices are accepted finally by the public.With the acceleration of urbanization in China,the government has limited control ability over public goods,meanwhile social capital is also seeking new investment channels.Under such a background,PPP received support and attention,and carried out extensive practice.Price is the logical starting point of the socialist market economy system.Pricingis the core issue of PPP which applies to the public domain.The pricing of PPP projects not only directly determines the cash flow and value of the project,but also directly affects the interests of the public.This paper is committed to analyzing the inherent limitations of traditional government pricing model,and comparing and analyzing the advantages of government and social capital cooperation.Based on the“Price Law” and the “the Administrative Measures on Franchising of Infrastructure and Public Utilities”,this paper analyzes a better,more reasonable,and more The operative pricing mechanism--the cooperative pricing in the PPP--ensures that public and private interests are met,that resources are allocated rationally under the PPP model,and that social public benefits are guaranteed.The main body includes the following four parts: First,the basic issue of the pricing mechanism is to clear and definite the pricing power.It is clear that the pricing power is a complex of power and rights with analyzing of the attribute of the pricing power.Further,to clarify the government pricing power--government pricing power is economic power rather than administrative power in the economic field,and furthermore defined pricing power is a complex of economic power and economic rights.Finally,analyze the status quo of China's public utility pricing mechanism;Second,it is a systematic explanation of the cooperative pricing mechanism.The most essential feature of the cooperative pricing mechanism is cooperation,which is also the essence of the PPP model.The cooperative pricing mechanism optimizes the pricing mechanism from the elements of “pricing holders”,“pricing method” and“pricing performance”.Further analyzes the challenges brought by the cooperative pricing mechanism to government pricing and the logic of interests behind it;Third,it discusses the international experience of the pricing model of public-private partnership.Mainly analyzes the beneficial practices and experiences of France,the United Kingdom,and the United States.Last,it proposes the idea of a public-private partnership model with a sound pricing mechanism for public utilities.This paper puts forward some comprehensions and proposals from the basic principles of the pricing,the initial price determination mechanism,the following adjustment mechanism,and the performance appraisal system of pricing.