China's Urban Water Supply Industry To Introduce A Competition Mechanism

The development of water supply industry is important to develop the economy of our country and the cities. City water supply industries have fast developed after our country was built especially after our country began to reform. But because of the history and system, water supply industries have many problems in our country. One of the important source that obstructs the development of water supply industry is that water supply enterprises work inefficiently. How to increase the economic efficiency of water supply enterprises is crucial in china. Water supply industry is a typical natural monopoly industry, but it has permanent monopoly area and temporary monopoly area. That we introduce competition in temporary monopoly area will accelerate the development of water supply industry.The thesis firstly analyzes the technical and economic features of city water supply industry and actuality and problems of city water supply industry in our country. On the basis of this, the article compares three theories that are the theory of franchise bidding,the theory of yardstick competition and the theory of workable competition. I think the way which be used to introduce competition in water supply industry is the spin-off reform on the guide of workable competition. Thought it, water supply enterprises will gain proper recompense on the premise of satisfying social commonweal and water supply industry will be the way of competition. Meanwhile, because of the particularity of water supply industry , government regulation will be emphasized after the spin-off reform.