State Nature in Production and Supply Activities

The core and decisive factor is the economic life of the productive forces, therefore, the appropriate economic form and mechanism for the development of that economic life. In a market economy, the economic life of the productive forces in general and of

Electricity in particular is a value that is constantly increasing.

The basic expression of the constantly increasing value is the surplus value that is produced and increased continuously. The surplus value that is produced and increased continuously assumes: i , Investment capital (i.e. capital) is maintained and reproduced continuously on the basis of a large and constantly increasing productive force. This productive force is determined, to a certain extent , by the level of technology, by the level of management and administration of the production process, and ultimately by the productivity of total factors (TFP). On the other hand , the scale of surplus value produced, as well as changes in technology, in the process of rationalizing production, require additional capital investment, i.e. additional capital. Here we see a spiral of surplus => accumulation and accumulation => surplus. In the spiral of surplus – accumulation and accumulation – surplus is the increase or development in both quantity and quality of the productive forces, or of the productive power. It can be said that, in the industrial process, the productive forces, which here are electricity, have their economic life as the movement of value, or the process of increasing value, of the unceasing movement of producing surplus and unceasingly increasing surplus. In the spiral of surplus – accumulation, the advancement and development of the productive forces becomes an endogenous factor of the process of unceasingly increasing the productive power of capital.

ii , But the spiral of surplus value and accumulation is, in the final analysis, the movement of capital, or investment capital, in a market economy. ë here are two

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Key points: a, The market economy is a system of inevitable relationships in the operation of

b, The surplus-accumulation spiral as the economic life of the industrial production force and of electricity is the content, or essence, of the process of producing and supplying electricity to the entire economy - society in the economy.

market economy. In a market economy, the production process and in general all economic activities take the form of business, that is, the process of investing capital in a certain field to continuously increase the value of capital. In this process, productive forces, which in this case is electricity, are produced and supplied to the entire social production . In other words, profit is

The economic driving force of the continuous increase in productive forces, which in this case is electricity; the market mechanism is the mechanism in which electricity is produced and supplied to social production and business, which is the economic method in the production and supply of electricity .

A question raised here is, what is the political task of electricity production and supply, or of the electricity industry? Let us compare the two methods, the centralized, bureaucratic planned economy and the market economy. The centralized, bureaucratic planned economy and the State economy determine the goal, therefore, the political task of the electricity industry, or the electricity production and supply sector, is to ensure enough electricity at any price for the economy - society. We can see that, due to the special position and function of electricity in the industrial production system: the specific productive force of the industrial process and the technical foundation of large-scale industry, it is therefore the decisive factor.

determined for the development of the entire economy and social development, therefore the State must take control of the electricity sector and through the electricity sector regulate and promote economic development and social development. In turn, this makes electricity, from an economic-technical factor, turn into a special political factor. In a certain sense, here, electricity is politicized. In turn, as a political factor, electricity goes beyond the market economic framework and is placed in a political-administrative, bureaucratic framework: electricity production and supply are guaranteed by State resources, operating according to the real-payment-real-spending mechanism, or the subsidy mechanism and more generally, the non-economic mechanism - producing and supplying electricity at any price, as long as there is enough

Electricity for the economy – society. To advance, electricity needs resources.

from the outside, which in this case is from the State and according to the State's command and control. Of course, with the subsidy mechanism, electricity, a decisive productive force

The regime does not have an economic mechanism and endogenous economic life to generate itself, promote itself and develop. As we have seen in Chapter II, this mechanism will form a spiral: to promote, it needs more additional subsidized capital from the State => less effective, more stagnant => more capital is needed. In addition to inefficiency and stagnation, the subsidy and bureaucratic mechanism also contains the potential for consequences in management and distribution: loss, waste, corruption and unfairness.

Thus, nationalizing and politicizing a productive force, in this case electricity, is not a suitable method for electricity development. Lacking a self-regulating, self-moving economic mechanism, electricity lacks a

economic life for self-promotion and self-development. On the contrary, in the market economy, electricity as a business investment field, and itself

Electricity operates in the business mode, the mode in which electricity operates in the constant vortex of surplus-accumulation, electricity operates in the pressure of supply and demand and the market mechanism. Under the impetus of the market mechanism, of the law of value and the law of profit, the mode of production

Electricity is always being innovated and modernized, so it is always able to meet the needs.

meet the electricity needs of the economy - society and with the trend of lowering costs, therefore, at a cheap price. Here , in the market mechanism, electricity as a productive force has its own economic life: that is the value of capital invested in electricity that moves and reproduces and expands continuously. It can be said that in life, value increases continuously, electricity is produced and supplied to society with increasingly high productivity and efficiency, therefore, the price can be increasingly cheap.

Thus, replacing the subsidy and command mechanism imposed by the centrally planned economic model with a market mechanism, replacing the State taking over the industry

electricity, organize electricity production and supply according to a centralized planning model by letting the market mechanism decide on the appropriate business entity, due to

It is essential to establish a business model for the production and supply of electricity.

economic weakness

Thus, the issue of innovation in the electricity industry, therefore innovation in income distribution, is determined by the shift from political thinking, the thinking of centralized State planning, to market economic thinking, viewing the electricity industry as a purely economic and technical field, and for the electricity industry to develop, it needs to be placed entirely on the basis of the market economy system, and the operation of the electricity industry must be

carried out according to the business method of the market economy. It can be said that completely shifting the electricity production and supply activities to the market economy and consistently and thoroughly commercializing the electricity industry is the inevitable and lawful path to develop the electricity industry.

3.2.2. Innovation in the economic system aims to transform the electricity industry from a centrally planned and bureaucratic economic system to a market economy, transforming electricity production and supply into a business activity based on market principles.

3.2.2.1 State nature in production and supply activities

Electricity: Equitization of state-owned electricity enterprises.

The key point of maintaining the centralized, bureaucratic economic planning system in the electricity industry for a long time is that the electricity industry, in the process of innovation, is basically still a part of the State economy. Here , the State decides from the beginning all the activities.

The movement and development of the electricity industry to business activities, that is, the State is both the owner and the business entity. In a certain sense, the centralized, bureaucratic planned economic system is maintained, which is basically determined by the identity between the owner and the business entity of the State, and also by the

This brings the State backwardness in its functions. Here , we need to analyze a little. Above, we have seen that, on the one hand, it is assumed that because the electricity industry has a decisive meaning and role in the process of industrial development and the economy in general, therefore, to promote economic development, the State needs to take control of the electricity industry. On the other hand, because of the decisive role and meaning of the electricity industry, therefore, the electricity industry is a "peak of command", so to control and orient development, the State needs to take control of the "peak of command" which is the industry.

electricity. But this is the thinking of a centrally planned, bureaucratic economy. To explain the nature of the State in electricity production and supply, we need to understand the new function of the State in a modern market economy.

In a market economy with a modern model, the structure of the market economic system has changed. The decisive change is that on the basis of a high level of socialization of the market economy, a new function of the State has appeared, the function of efficiency, stability and fairness and in general, the function of development. Performing the function of development, the State is structured into a public economic subject in providing public goods and services, and at the same time is a regulator of the economy. In this new function, the State is not a substitute, and even less is it a negator of the private economy and the market economic system. On the contrary, the State in its economic function is a component of the modern market economic system, therefore operating according to the laws and mechanisms of the market economy, and at the same time is a supporter and facilitator for the market to function well in allocating resources, and in general, for the market economic system to function.

good operation. This implies that the development function of the State is expressed through the function of managing and administering the economy, not the business function. If the State is an economic entity, it is a public economic entity, in the role of the owner of public resources of the economy, the investor in developing common infrastructure for the development of the entire economy. The key to understanding the development function in terms of the economic entity of the State is the distinction between the ownership category and the business category.

Ownership includes the right to possess and the right to use, and economically it is the exercise of that right of ownership, that is, the receipt of the price of the objects of ownership.

That is. Business is the process of making the value of investment capital (capital) profitable, or producing profit. Due to the nature of the public economic entity, the State is not the most suitable person for business activities. Therefore, the State's business through State-owned enterprises is often ineffective. On the other hand, an equally important thing is that, due to the lack of a specific entity, in enterprises, the State, a public economic unit, private relations

can still arise, especially in the market economy, private relations can arise strongly and the process of turning public into private takes place, weakening public relations and the public economy. This is a process that is difficult to prevent. It not only weakens the public economy, more importantly, it damages the economic system, breaks the principle of parity, and thus breaks the market economy mechanism.

Thus, in a modern market economy, the State basically does not perform business functions. Business functions are functions of the private economy. As a public economic entity, the State is the provider of public goods and services: institutions, administrative services, security, social security, part of educational services, health care, environment and common infrastructure of social production. In a certain sense, in terms of economic nature, that is, in terms of production and consumption, in a market economy, electricity is not a public good. The State's control of the electricity industry, the production and supply of electricity comes from a political perspective. On the one hand, considering electricity as a decisive productive force, the foundation of socialism, and moreover, a commanding height, therefore, the State must take charge in relation to controlling the economy. On the other hand, the production and distribution of electricity requires large investment capital, beyond the scale of private economic concentration in the early stages of development. Therefore, in order to initiate the development process and immediately put the economy on the track of large-scale industry, the State, as a public economic entity, the holder of large concentrated capital sources, and moreover, the strategist and the developer of development, implicitly becomes an investor, as well as a producer and supplier of electricity. In turn, electricity is produced and supplied by public economic entities, which makes electricity take the form of a public good or service.

Once a public good or service and placed within a centrally planned, bureaucratic economic system, electricity production and supply to a large extent

placed outside the market economy, and is not a business activity according to market economic principles. Equally important is that when the electricity industry is identified as a public good and controlled by the State,

In practice, along with development, the scale of the electricity industry is increasingly large and important.

important, then not only the development of the economy in general revolves around the electricity industry, but the State economy, especially the economic income of the State from the electricity industry becomes larger and larger. In turn, this gives people a concept, the State no longer controls the electricity industry, the State economy will decline and especially the State's revenue will decrease. Here there are economic constraints in the direction of increasingly tightening the electricity industry in the State economic framework, and the spiral is formed on erroneous thinking, and the error is increasing day by day.

Thus, to marketize and commercialize the electricity industry, it is necessary to: i , Rethink the function of the State in the structure of the development process: The function of the State is the function of administration and management of the development process, not the business function. In other words, the State withdraws from the business function, so that electricity production and supply take place according to the rules of the market economy. On the basis of the laws and market mechanisms in electricity business, it will prescribe appropriate business entities for electricity goods and services; ii , Rethink electricity goods and services, return to the normal nature of electricity goods and services: Electricity is a normal good and service, therefore all economic entities can invest and do business, as long as it is based on the principles of the market economy and the provisions of law.

De-nationalization of the electricity industry and deregulation

State electricity is related to the problem: a , Who replaces the State in business; b , How to solve it?

First of all , we see that the State's control of the electricity industry and its business has two origins, an ideological origin and a historical origin. In terms of thinking, as seen above, it is the thinking of a centrally planned, non-market economic system, the political thinking that the State needs to control the "commanding heights", the factors belonging to the technical foundation, therefore the foundation of economic development and the incorrect thinking about electricity as a public good. These thoughts make the State in its development function take over the electricity industry and, moreover, directly operate in it.

electricity business through the establishment and development of state-owned enterprises in the electricity industry. This means that when the development mindset is changed, the barrier to transferring electricity business away from the State will be removed.

In fact, if the entire process of electricity production and supply is placed on the basis of a market economy and therefore in the conditions of a normal business environment,

If the market mechanism is equal, it will automatically turn the production and supply of electricity into a business process and the market mechanism will restructure the economic entities in the electricity business, that is, decide a fundamental economic problem - the problem of who is the producer. The electricity business entity is then the one with the best production method, the best response and response to the requirements of the market economy laws, and therefore the producer - trader.

electricity with the highest productivity and efficiency, the winner in fair competition

equality in the market mechanism. Historically, not only electricity, but basically the entire economy before 1986, that is, before the renovation, was a state economy with two forms, the people's economy and the cooperative collective economy. Electricity is the decisive productive force and is considered the technical basis of large-scale socialist production, therefore,

controlled by the State, and moreover, it is a top priority sector. When renewing the economy, small production sectors, closely linked to household business activities, are strongly privatized, such as agriculture, small-scale industry, small traders, and in the large-scale industrial sector, it is light industry. Electricity is a key heavy industry sector, so the State continues to control it. On the other hand, in terms of economy, electricity production and supply require large investment capital, when renewing, the domestic private sector is still too small, not strong enough to carry out production and supply.

Electricity, at the same time, the level of economic integration is still low, there are no foreign investors investing in the production and supply of electricity. These are the things that make it necessary for the State to continue to control the production and supply of electricity. But now, after 20 years of renovation, the development context has completely changed, the issue of de-stating the nature of the electricity industry has been raised and has become necessary.

As above, we can see that the solution to the State nature in electricity production and supply is:

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