What is the reform plan for China's power industry?
The Chinese government is in the final stages of a decade-long effort to restructure the RMB120 billion State Power Corp. (SPC). It is aimed at a fully integrated national grid system and an independent, merchant power sales system. Under the announced outline of the plan, SPC will no longer be involved in power generation. The new plan gives SPC control of electricity transmission redistributes power-generation assets among regional power companies. The Chinese government says the new plan will separate power plants from power-supply networks, privatize a significant amount of state-owned property, encourage competition, and revamp pricing mechanisms. They also say the plan will set up a national power regulatory committee that will formulate a set of fair, rational, and transparent supervisory regulations.
Back
