Analysis: Room for Change

By Chief Economist Shen Minggao

Public Vents as Utility Prices Rise
Part I - A Rising Tide of Water Prices
Part II - Electricity Price Reform: Still Putting the Cart before the Horse
Part III - Natural Gas -- Pressure from the West

( Magazine) In China, electricity, gas, water, sewage treatment and postal service are nearly all monopolized by the central government or local governments. Monopoly power means pricing power in these industries, both because it is difficult for consumers to find another provider and because demand for service is relatively inelastic (i.e. prices do little to affect consumption). As a result, consumers usually accept price increases with little complaint.