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)
