The Research On The Mechanism Of The Electric Universal Service Financial Compensation

Universal service, the cross subsidy mechanism, has been difficult to adapt to the needs of economic development power after the introduction of market competition in the power industry .So should establish a new funding model and to guarantee the capital provision. According to the theories of economics and finance, methods for the fund-raising of electric universal service compensation are proposed in view of the electric market structure in China, basing on the effects of taxes on grid acts and its economic efficiency. Also it is discussed how to effectively compensate for universal service projects related issues. Because universal service compensation theory and method used to guide practice has not yet been born, efforts are attempted here to work out some methods of qualitative measurement for universal service compensation, and the formulas are given respectively. A case in Yunnan Province proves the feasibility of the universal service compensation fund-raising and the compensation methods, and indicates a catalytic role for the increase in the level of universal service.