Hostname: page-component-8448b6f56d-xtgtn Total loading time: 0 Render date: 2024-04-23T17:34:59.241Z Has data issue: false hasContentIssue false
  • English
  • Français

Regulating China's Power Sector: Creating an Independent Regulator without Autonomy*

Published online by Cambridge University Press:  14 May 2014

Chung-min Tsai
Chung-min Tsai*
Affiliation:
National Chengchi University, Taipei, Taiwan, ROC. Email: cmtsai@nccu.edu.tw.
Get access Rights & Permissions [Opens in a new window]

Abstract

Throughout its period of economic transition, the Chinese state has readjusted its relationship with industry and developed new regulatory schemes. China's first industry-specific independent regulatory agency, the State Electricity Regulatory Commission (SERC), was created in 2003. Its operation does not follow Western practice which adopts the best institutional arrangement for autonomous regulators. This article will examine the failings and regulatory capture of SERC. I argue that because the process of creating a new regulator involves resource reallocation and power redistribution, SERC has suffered both endogenous and exogenous disadvantages since its inception. The compromised institutional design, along with insufficient resources and fragmented authority, has considerably weakened SERC's regulatory capacity. Moreover, SERC was not designed as part of the reform schedule, but rather emerged later as a response to institutional necessities, which also contributes to its vulnerability. As a result, the state has exposed SERC to potential capture by both government entities and regulated enterprises.

Keywords

Chinapower reformindependent regulatory agencyState Electricity Regulatory Commissionregulatory capture
Type
Articles
Information
The China Quarterly , Volume 218 , June 2014 , pp. 452 - 473
Copyright
Copyright © The China Quarterly 2014 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

*

The author thanks Lowell Dittmer, You-tien Hsing, Chih-shian Liou and Steven Vogel for their helpful comments and suggestions. This research is partially supported by National Chengchi University's Top University Project and Taiwan's National Science Council (101-2410-H-004 -134 -).

References

Andrews-Speed, Philip, and Dow, Stephen. 2000. “Reform of China's electric power industry: challenges facing the government.” Energy Policy 28(5), 335–347.CrossRefGoogle Scholar
Bai, Hongyi, and Yan, Jian. 2005. “Chai Songyue yu dianjianhui: kunjing zhong mou gaige” (Chai Songyue and the State Electricity Regulatory Commission: reforms in predicament). Zhongguo xiaokang 10, 47–49.Google Scholar
Berrah, Noureddine, Feng, Fei, Priddle, Roland and Wang, Leiping. 2007. Sustainable Energy in China: the Closing Window of Opportunity. Washington, DC: The World Bank.Google Scholar
Chen, Ling. 2010. “Playing the market reform card: the changing patterns of political struggle in China's electric power sector.” The China Journal 64, 69–95.CrossRefGoogle Scholar
Cheng, Tun-jen, and Tsai, Chung-min. 2009. “Powering rent seeking in the electricity industry.” In Ngo, Tak-wing and Wu, Yongping (eds.), Rent Seeking in China. London: Routledge, 117–144.Google Scholar
Christensen, Tom, and Lægreid, Per. 2007. “Regulatory agencies – the challenges of balancing agency autonomy and political control.” Governance 20(3), 499–520.CrossRefGoogle Scholar
Dangdai Zhongguo congshu bianji weiyuanhui. 1994. Dangdai Zhongguo de dianli gongye (China Today: The Power Industry). Beijing: Dangdai Zhongguo chubanshe, 65–79.Google Scholar
Gao, Shiji. 2002. “Shizilukou de Zhongguo dianli chanye” (China's electricity industry at the crossroads). In Zhang, Xinzhu (ed.), Zhongguo jichu sheshi chanye de guizhi gaige yu fazhan (Regulatory Reform and Development in China's Infrastructure Industries). Beijing: National School of Administration Press, 19–22.Google Scholar
He, Jun. 2009. “Tegaoya dianwang jianshe: gaige haishi longduan?” (The establishment of the UHV grid: reform or monopoly?). Nanfengchuang 10, 78–79.Google Scholar
Lan, Zhiyong. 1999. “The 1998 administrative reform in China: issues, challenges and prospects.” Asian Journal of Public Administration 21(1), 29–54.CrossRefGoogle Scholar
Levi-Faur, David, and Gilad, Sharon. 2004. “The rise of the British regulatory state: transcending the privatization debate.” Comparative Political Studies 37(1), 105–124.Google Scholar
Lieberthal, Kenneth, and Oksenberg, Michel. 1988. Policy Making in China: Leaders, Structures, and Processes. Princeton: Princeton University Press.CrossRefGoogle Scholar
Ma, Yingjuan. 2008. “Zhongguo zhengfu jianguan jigou goujian zhong de queshi yu qianzhanxing sikao” (The imperfections and forward-looking thinking of the construction of the Chinese regulatory agencies). Hebei faxue 26(6), 80–86.Google Scholar
Majone, Giandomenico. 1997. “From the positive to the regulatory state: causes and consequences of changes in the mode of governance.” Journal of Public Policy 17(2), 139–167.CrossRefGoogle Scholar
Majone, Giandomenico. 1999. “The regulatory state and its legitimacy problems.” Western European Politics 22(1), 1–24.CrossRefGoogle Scholar
Marquand, David. 1988. The Unprincipled Society: New Demands and Old Politics. London: Cape.Google Scholar
Pearson, Margaret. 2005. “The business of governing business in China: institutions and norms of the emerging regulatory state.” World Politics 57(2), 296–322.CrossRefGoogle Scholar
Pearson, Margaret. 2007. “Governing the Chinese economy: regulatory reform in the service of the state.” Public Administration Review 67(4), 718–730.CrossRefGoogle Scholar
OECD. 2002. Regulatory Policies in OECD Countries: From Interventionism to Regulatory Governance. Paris: OECD.Google Scholar
Shan, Jilin. 2002. “Dianjianhui xu libi chengwei ‘huaping’” (The SERC shall try to avoid becoming a “Vase”), Zhongguo jingji shibao, 6 September.Google Scholar
Shao, Shiwei, Lu, Zhengyong, Berrah, Nourreddine, Tenenbaum, Bernard and Zhao, Jianping (eds.). 1997. China: Power Sector Regulation in a Socialist Market Economy. Washington, DC: The World Bank.CrossRefGoogle Scholar
Thatcher, Mark, and Sweet, Alec Stone. 2002. “Theory and practice of delegation to non-majoritarian institutions.” West European Politics 25(1), 1–22.CrossRefGoogle Scholar
Tsai, Chung-min. 2011. “The reform paradox and regulatory dilemma of China's electricity industry.” Asian Survey 51(3), 520–539.CrossRefGoogle Scholar
Wang, Junhao, and Zhou, Xiaomei. 2008. “Dabuzhi beijing xia longduanxing chanye de guanzhi jigou gaige: yi Zhongguo dianli guanzhi jigou gaige weili” (Discussion about reform of regulatory agencies in monopoly industries under China's super ministries system: the case of China's electricity regulatory agency). Zhongguo gongye jingji 244, 47–56.Google Scholar
Wang, Qiang. 2007. “Dianjianhui huanshuai” (Chairman of SERC has changed). Shangwu zhoukan 3, 52–54.Google Scholar
Wang, Zhiqiang. 2006. “‘Kuilei’ dianjianhui” (The ‘Puppet’ SERC). Zhongguo qiyejia 4, 73–75.Google Scholar
World Bank. 2005. China: Deepening Public Service Unit Reform to Improve Service Delivery. Washington, DC: The World Bank.Google Scholar
Xu, Yi-Chong. 2002. Powering China: Reforming the Electrical Power Sector in China. Aldershot: Ashgate.Google Scholar
Xu, Yi-Chong. 2004. Electricity Reform in China, India and Russia: The World Bank Template and the Politics of Power. Cheltenham: Edward Elgar.Google Scholar
Yeh, Emily T., and Lewis, Joanna I.. 2004. “State power and the logic of reform in China's electricity sector.” Pacific Affairs 77, 437–465.Google Scholar
Zhou, Hanhua. 2003. “Jigou yu falü” (Institutions and laws). Nanfang zhoumo 987, 9 January.Google Scholar