The Essence of Regulatory Reform of Natural Monopoly Industry and Market-oriented Tackling Difficulties

Industrial regulation of natural monopoly is the regulatory organizations' micro-intervention into the monopoly firm's market behavior.Market failure by natural monopoly needs to introduce the governmental regulation.Inefficient and even failed regulation calls for the regulatory reform.Market failure and regulation failure need to prop-erly deal with the relation between the government's intervention and the market competition of the natural monopoly industry.The essence of the regulatory reform is readjustment of the relation between the government and the market under a double failure.Regulation is not to replace but to promote competition.Currently the market-oriented reform of the natural monopoly industry has entered a crucial stage.The main task of regulatory reform is to promote private capital to enter effective competition under regulation.