The Research On The Operational Mode Of Chinese Electricity Industry Based On Regulation And Competition

Being one of the most important fundamental energy industries of national economic development, electricity industry is the focus and forerunning industry in national economic development strategy. Its development plays an important role in national economic development and social progress. Electricity industry is considered to be a typical natural monopoly industry for a long time due to its special characters, therefore, many countries chose state-monopoly operational mode. However, with the development of electricity economy, the natural monopoly of electricity industry has reduced, the previous operational mode could not meet the development of electricity industry in the new situation, and exposed more and more disadvantages. It restricts the further development of electricity industry and the improvement of electricity resource allocation and operational efficiency. In order to improve the operational efficiency of Chinese electricity industry and enhance social welfare, research on operational mode of Chinese electricity industry plays an important role for the development of electricity industry and the whole country's development.Firstly, this thesis explains natural monopoly theory, regulation theory and competition theory related to electricity industry. Secondly, the thesis expounds four operational mode of electricity industry and its advantages and disadvantages, introduces foreign countries'operational modes of electricity industry. Then, in the light of Chinese electricity industry, the thesis introduces the evolution of its operational mode, points out the disadvantages of its present operational mode, analyzes its current market structure, and systematically analyzes the operational mode of the industry by using competition theory and regulation theory. Finally, the thesis puts forward some countermeasures to enhance the efficiency of Chinese electricity industry's operational mode from the view of regulation and competition. Market is the best way to allocate resources, but competition brings market failure, it needs the government regulation. Regulation brings regulation failure, it needs supplement of competition. Aimed at enhancing the operational efficiency of Chinese electricity industry, the thesis uses regulation theory and competition theory to discuss the efficient operational mode of Chinese electricity industry from the view of market structure. The study and its conclusion on operational mode of electricity industry enables people to have further understanding of the operational mode of Chinese electricity industry. In electricity industry, different parts should be distinguished and carried different regulation and competition, and the balance of competition and regulation is the best way to enhance the efficient operational mode of Chinese electricity industry.