The Research Of Chinese Administrative Regulation On The Price In Electric Industry

The policy declared publicly in the 16th Central Committee of the Communist Party of China (CPC) and the Third Plenum of the 16th Central Committee of the Communist Party of China that lead the market competition mechanism in to natural monopoly business, and require government to transform their function to serve the market main parts and to create well market surroundings. Those raise a new round of tide to reform the state owned enterprises. The electric power industry is of the natural monopoly industry, we must face the severe challenges and trials brought out from the problem that how to set up a rightful price formation mechanism in the reform flood of adapting to the socialism market economy. It rise a meaningful subject to the managers of electric power enterprise, meanwhile, it is the first mission to our government that the government as a regulator, how to make alteration form all aspects of regulate method, government functions, regulate organizations and administrative actions; in order to promote the development of the socialism market economy in the sphere of natural monopoly industry.This article suggest at the level of concrete operation on the price regulation in the electric power industry by government, in the sphere of microcosmic regulations. This article based on the economics theory, begins with the concept of administrative regulation, elaborates on the related theories, the unites Chinese administrative prices regulations to the electric power industry in practice, further dissects the current issues exits in the prices regulations, at last, draws lessons from the experiences in regulations gained by developed countries from tow aspects of negative and positive to suggest on the electricity price reform at the level of concrete operations. At present, scholars have different states to the concept of administrative regulations, but synthesizing the distinctive points. The concept of administrative regulations can be generally put in a nutshell that "with authoritative by legislature, the relatively independent administrative regulator (or the regulate organization), following the certain regulations to act a series of administrative regulations and supervisions to the aspects being regulated (most of them are enterprises) " This concept reflects three key elements clearly "regulator, the aspect being regulated and the regulation". It hence to analysis the quality of administrative regulation is of administrative actions, any kinds of formulations and implementations of the administrative regulation policy represents the political trends of the governments at all levels. After that, discusses the requirements of the administrative regulations from the levels of macroscopic (the natural monopoly character, and the outside character) and the microcosmic, suggests the necessity of the administrative regulations on preventing from monopoly and over competitions, and on protecting the benefits of the consumers. The price regulation is the chief context of the administrative regulations. Through the prove to the relationship between the essential target of price regulation and the form of fixing the price, the achievements is to determine the regulated price level on the marginal costs might cause a deficit, it is difficult to achieve the result that maintains the enterprises' developing potential, and also hard to stimulate the enterprises to rise the production effectiveness, though, it will ensure the apportionment effectiveness from the theory aspect. So that we bring out two modes of price regulation in developed country, the one is price regulation to the investment revenue belong to America, the other one is the ceiling price regulation belong to Britain. Through the comparison, we sum up the successful experience for China. Electric industry is of natural monopoly industry; it needs the administrative price regulation indeed from the aspects whatever the technical character or the economic character. This article units the concept, classify, character, and formation of th...