Study On Institutional Restructuring And Government Regulation Of Power Industry

On the basis of analyzing the features of power industry and it's product-electricity, this thesis gives a retrospective view of the development process of Chinese power industry. For it's unique status in the national economy, this paper elaborates on the internal relationships between power industry and macro-economy. By analyzing overheated sectors in the economy, the author give out his view of various causes of economic overheating in which institutional defects top the list. This thesis also put forward the driving forces behind the institutional restructuring campaign in the power industry. It is of high importance to strengthen government regulation. The necessities of an effective government regulation is also included in this article. To ensure this aim, the organizational structure of government regulation should be well designed in advance. Although it's a global trend to initiate a market-oriented reform in power industry, special attentions should be given to ward off risks which originated from market failures and the conflicts between the innate attribute of power industry and market-economy mechanisms. Taking power industry as the representative of natural monopoly, We have no other choice but stick to the road of reform, at the same time, we should keep a clear mind and never be over optimistic. According to foreign experiences, it's only natural to pay some money as the cost of reform due to high risks in the process of power industry restructuring. Now the reform process in the field of power industry in china has stepped into a new stage, we have full confidence in expecting a bright future for the power industry in china. A surge in power industry investment in the past 5 years has inevitably created a surplus in power generating capacity, the turning point of the whole industry now has emerged.