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China Steps up Reform of Electric Power System
China will intensify reforms to break up the state-monopoly of the electricity supply system in order to cut costs and raise efficiency.

The reform will include restructuring state-owned assets, implementing a new pricing mechanism and bettering the regulation of the electricity industry, Xie Songlin, vice-president of the State Power Corporation, said Wednesday at the Annual Meeting of the Asian Development Bank (ADB) in Shanghai.

At present, the State Power Corporation owns 46 percent of the country's total electricity generation assets, and 90 percent of the total electricity supply assets.

The reform will divide most of the electricity generation sector from the corporation and set up five independent national power plants, according to Xie.

After the restructuring, a national power network corporation will be established, and five regional subsidiaries will be affiliated to the national corporation in north, northeast, northwest, east and central China.

A separate power network company for south China will be set up, said Xie.

He added that a more appropriate electric pricing system will come into being in the foreseeable future.

Since the founding of the State Power Corporation five years ago, the sale volume of electricity has increased 26 percent, and the net profit has grown 40 percent, according to Xie.

In 2001, the corporation ranked the 77th among the world top 500 companies.

( May 9, 2002)

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