The Economic Times

Friday, June 13, 2003

China to end monopoly in electricity market

PTI

BEIJING: China has announced that the country's first regional electricity
market would be established within the current year. This would end the
monopoly of the big power companies.

The move was considered historic in the break-up of the monopoly of the
electricity sector and would trigger the restructuring of the sector, a
spokesman of the State Electricity Regulatory Commission (SERC) said.

The regional electricity market will take shape in China's north-eastern
provinces of Liaoning, Jilin and Heilongjiang. It will also cover Chifeng
and Tongliaoin cities and Hinggan and Hulun Buir Leagues (prefectures) in
the Inner Mongolia autonomous region.

The north-eastern electricity market will undergo trial operations at the
end of October, this year and begin formal operations in January 2004.

The north-eastern power grid company was expected to be established soon,
said the spokesman, referring to the establishment as a priority for China's
opening of the regional electricity market.

The SERC has planned to complete the supervision system over the
north-eastern electricity market by introducing a series of related pricing
policies and boosting market competition within the region, the spokesman
said.

The establishment of an electricity futures market was also on the
commission's agenda, he added.

The commission would approve the plan to establish a north-eastern regional
electricity market before the end of July and two more similar regional
electricity markets would be created in the eastern and southern regions
within the year, the SERC Chairman, Chai Songyue said.

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