Improve The Cost-effectiveness Index System Of Water Supply Enterprises In China

As a public utility, water supply industry has the particularity itself—natural monopoly and social commonweal, which is not in the general companies' possession. During the past long period, as a state-owned enterprise, its construction and operating expense is disbursed by governmental finance, and the management is deeply influenced by the planned economic system, the enthusiasm of the company and its employees is not high, hence the operating cost is over high, the operating fund is applied unreasonably, and there are the existing problems of low production efficiency, high operating cost, worse economic benefits and so on.The existing cost benefit index of water supply enterprise cannot exert the function, cannot satisfy the requirement for water supply enterprise analyzing cost benefit, cannot provide valid base for long-term development of water supply enterprise, cannot satisfy the requirement for the management team making important management decisions, and cannot change the status that the benefits of water supply enterprise in China is generally bad. Therefore, in order to promote the economic benefits, the essay is a study on completing cost benefit index system of water supply enterprise.The way to enhance the benefits is to increase the income or reduce the cost. Seeing from the characteristics of finance status of water supply enterprise, since the amount of water sales is stable, only water price adjustment and cost cutting can enhance the enterprise's benefits. But at present the cost benefit index system of water supply enterprise is not completed, which limits enhancing benefits via both ways above. The main reasons are: since there is no net income benefit index considered, the economic benefit index is generally on the low side; since there is no production efficiency index for control, the cost increasing cannot be held out from the headstream, and it cannot be controlled efficiently.To complete the water supply enterprise's cost benefit index system, at the point of cost and benefit analysis, combined with the characteristics of the water supply enterprise's own finance status, via the study on existing cost benefit index and finance analysis system, starting from the practice in working, analyze and summarize other index, and according to the real significance and function of each index, complete a reasonable evaluation index system - the index system consists of production efficiency, operating cost, economic benefit sub-index system. As shown in the sample analysis of City A Water Supply Corporation of Henan Province, the effect of the index system which consists of production efficiency, operating cost, economic benefit sub-index system: the indexes required completing of the water supply corporation are acquired from the arrangement of the corporation's finance data in the past five years and the analysis of data of each index in cost benefit index system. Via the optimizing the indexes required completing and comparing status before and after completing each cost benefit index, it is shown that this index system has evident effect on enhancing water supply enterprise's benefits, which will be a great value for reference for operating of water supply enterprise.