Lead
The term "power monopoly" is a bit scary when it comes out, because it conjures up images of a situation where demand exceeds supply, and it also makes the electricity market uncompetitive, which slows down the market and causes price fluctuations to become disorderly, thus affecting the stability of the country's economy.
But at the same time, electricity is also a basic business, which requires a very large and very expensive production equipment, which requires manufacturers to adopt large-scale production methods in order to save production costs, which will be a huge challenge for small enterprises.
Therefore, in order to protect enterprises and better protect the country's economic development, it is necessary to make the electricity market more orderly, which requires the state to monopolize the electricity market.
So why does the state have a monopoly on electricity?
What happens if you switch to private?
Let's take a look at how United States does it?
Why should the state have a monopoly on electricity.
Generally speaking, markets can be divided into perfectly competitive markets, monopoly markets, oligopoly markets, and duopoly markets.
In a perfectly competitive market, the number of producers is large enough to stabilize the price of products in the market, so that the allocation of resources in the market is more reasonable.
However, the number of producers in the electricity market is very large, and each producer needs to sell independently, which will inevitably make people feel inconvenient, so the state needs to monopolize the electricity market, so that the price and supply can become unified, so that the market becomes more orderly.
However, if the state monopolizes the electricity market too much, it will make the electricity market uncompetitive and the price uncertain, which will cause certain problems in the supply of electricity.
Eventually, this will lead to the instability of the country's electricity supply, which will invisibly increase the country's electricity costs.
Therefore, it is necessary for the state to monopolize the electricity market, but at the same time, it is also necessary to maintain a certain degree of competition, so as to make the price more reasonable, and at the same time, it will make the market more transparent by allowing the electricity to be supplied in which region.
At the same time, there are some public welfare affairs in the power industry, which is difficult to achieve in the private sector, and the state can do better in this regard.
At the same time, there is a certain natural monopoly in the power industry, which is due to the expensive production equipment, which is bound to allow the producer to balance the production quantity and sales price, so as to maximize the profits of the enterprise, which to a certain extent forms a natural monopoly, so that other enterprises will become more difficult to enter the market.
At the same time, the production equipment is not generally expensive, which will also allow a small number of manufacturers to form a large market share, which will lead to market instability.
This means that if there are too many producers, then this will make the price in the market cheaper, so that the producer's income will be reduced, or even loss, which will inevitably make some small enterprises go bankrupt, which will make the market less competition, which will make the producer raise the price in the market, so that the market will further form a monopoly.
What will happen to private companies?
There is no doubt that the private sector can do a great job in many ways and, to a certain extent, can also contribute to the country's economic development.
Therefore, some people believe that if the power industry is operated by private enterprises, it will be more suitable for the operation of the market and will have more benefits.
However, the idea and approach of "market freedom" are problematic.
In fact, the power industry is a natural monopoly in most cases, so the power industry is a natural monopoly, and if the state hands over this industry to private enterprises, it will lead to some problems.
So what kind of problems are they, and how do they affect the production of the country, and what impact do they have on the development of the country?
Private enterprises are superior to state enterprises in some aspects, but in some respects state enterprises still have certain advantages.
One is that national enterprises have certain resources to carry out technical research, production innovation, and at the same time complete product safety testing, which can also make the operation of products more stable, so as to provide users with more stable services.
In addition, it can also be considered from the overall interests of national development, and the price in the market can be adjusted, so that the price of electricity can become more reasonable.
However, private enterprises also have certain advantages, that is, they can save the country's resources to a certain extent, and will not operate on the state's finances, so they can effectively reduce the pressure on the state's finances.
At the same time, it can also regulate the competition in the market, so as to make the operation of the market more orderly, and then it can also effectively market supervise, and better comply with the relevant national systems and regulations in the production process, so as to protect the overall interests of the country.
Therefore, the state and private enterprises have their own advantages and problems, so how to deal with this problem needs to be regulated through the relevant national system, so as to protect the interests of the country.
How does United States do it?
In general, the United States is free in the operation of the electricity market, while also supporting competition in the market, and also allowing private enterprises to enter, which means that producers in the market can not only produce according to their own production capacity, but also sell according to their own sales capacity.
In this way, a certain price and quantity will change at the same time in the market, which can effectively ensure fair competition in the market, and can also ensure that consumers can get better services.
In addition, the operation and management of electricity are entrusted to the private sector, and to a certain extent, there will be some problems, but also some advantages, so we will not introduce too much here.
Or it can be said that the electricity market in United States is in a semi-monopoly state, because many power companies are only responsible for local power supply, and some power companies can supply power across regions, in this process there will be some cross-regional power companies involved, but also need to be integrated into the national power industry development plan, so that the state plays a leading role in this regard, can make the market electricity prices and power supply can become more stable, and can also ensure that it can be healthy, Orderly development.
epilogue
There are also certain reasons why the state can monopolize the electricity market to a certain extent.
If the state has too many monopolies, it will also make the electricity market chaotic, so that the supply of the market will fluctuate to a certain extent, so that the price in the market will become unstable, so the state's monopoly on the electricity market should also be stopped.
At the same time, there are some problems of public power in the electricity market, which can neither be handed over to private enterprises to operate, nor can they be fully handed over to the state to operate, so this problem needs to be analyzed and summarized according to the development of the country, and a better solution can be found from it.