Chapter 34 9. Public Utilities Industry——The Knockout Competition After Unbundling

A foreseeable future is that the measure of regulation is of extraordinary significance to the public utility industry. In the near future, the country will inevitably loosen its control over the public utility industry gradually, and by then, its days of peace and stability will inevitably As history, companies in this industry, whether they can survive in the fight against new competitors, depend to a large extent on their own efforts. Introduction to the theme: Leisurely under control - the knockout game after loosening If we were to look for the most leisurely industry in the past 10 years, it would have to be the utilities industry.

For this industry, it provides basic living services or infrastructure services, such as water supply, power supply, heating, gas, ports, airports and public transport, etc. It can be said that no matter how the economic situation changes, people will not Reduce the need for these services. When the demand change elasticity of an industry is small, it often means the establishment of its profit advantage. It can be said that our economy has experienced a recession and our income has declined, but the demand for basic life services will not change much. The electricity we should use will not be less, and the water we should drink will not be a drop Heating is still needed in winter, and fuel is still needed for cooking. It is for this reason that the sensitivity of this industry to changes in the economic cycle is extremely low. As a result, the industry's good capital liquidity and ROI.

In China, this situation is becoming more and more obvious. What we know is that most of China's public utility industry, except for a very small part, is in a state of natural state monopoly. In this state, every move of the public utility industry is controlled by state capital However, no matter how the economic situation changes, the environmental protection brought about by the national policy will allow them to obtain a comfortable "comfort nest". In this sense, as far as China's public utility industry is concerned, it actually presents a situation of "managing profits regardless of losses". In this process, due to the emphasis on policies, it is very difficult to obtain credit from banks. Easy, the superposition of various factors has resulted in the industry and growth of this industry, with the characteristics of long-term and stability.

Here, we might as well make such a prediction. In the next ten years, the Chinese government will inevitably adopt a policy of selective liberalization of the public utility industry! The reason why I say this is because the current Chinese economy is facing a dilemma where it is difficult to find a way out. When our foreign trade business was hit by the financial crisis and fell into a slump, the lack of domestic demand due to insufficient national income , has also become a shackle to curb China's economic development. For the former, it will take time to revive. For the Chinese people whose income has been low for a long time, raising their income is far from something that can be accomplished overnight, and it is even more distant to expect them to save and consume.

Under such circumstances, choosing to let go of the public utility industry undoubtedly has a double meaning. With the coming of the next round of economic growth, the increase of the urban population, and the slow increase of residents’ income, there will be 1 billion urban population in our country, and these people will all need utilities such as water, electricity, etc. The upgrade of this consumption will directly These public utility industries, which serve the entire macro economy, have a good opportunity for rapid development. Therefore, this means that my country's public utility industry is bound to experience a development stage of rapid growth, and the industrial value it brings is undoubtedly inestimable.

In addition, the selective liberalization of the public utility industry also has the profound meaning of stimulating consumption. We know that low-income people can choose to refuse to consume industrial products, but people in modern society cannot refuse to consume basic life services or infrastructure services. When this broad market is opened, the energy industry will , The chain effect of the industrial equipment manufacturing industry will fully stimulate the production capacity of China's industry, and it will not be difficult to set off a new round of economic growth triggered by consumption.

A foreseeable future is that the measure of deregulation has an extraordinary significance for the public utility industry. In the near future, the country will inevitably gradually loosen its control over the public utility industry, and by then, its days of peace and stability will be It will inevitably become history. Whether enterprises in this industry can survive in the fight against new competitors depends to a large extent on their own efforts.