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The Research on the Mechanism of the Electric Universal Service Cost Compensation

Author: MaZuo
Tutor: ZhaoHuiRu
School: North China Electric Power University (Beijing)
Course: Technology Economics and Management
Keywords: universal service cost compensation fund cross-subsidy social assistance
CLC: F426.61
Type: Master's thesis
Year: 2006
Downloads: 211
Quote: 13
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Abstract


Universal service is an international transited definition like the “civil treatment”.It belongs to the public policy of the government. The tenet of the electric universalservice is to supply the power to all people at a received price. During theimplementing the electric universal service the difficulty consists in the costcalculation and the compensation.This passage takes the principal-agent theory into the analysis of mechanism ofimplementing the universal service. Based on the discussion of the existent problemsin the implement of the universal service nowadays and the design of the optimalencouragement mechanism, it proves that the most important thing for Chineseuniversal service is to establish a reasonable cost compensation. Through this methodthe electric regulation organization and the power enterprises can both get their profits.At the same time this passage brings forward to set up the mechanism of the electricuniversal service funds, and use the USFs to compensate the power enterprises. Thepaper takes Gansu province as an example to validate the feasibility of the USFs.

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