China's power industry development and market-oriented reform

The developed capitalist countries represented by UK started reforming their power industry in the mid-1980s. Their measures were to break free from the conventional integrated management mode of power industry; to separate power generation from grids and apply a power pooling system on the trial basis. All these measures are aiming at privatization of assets, breaking monopoly, reducing cost, increasing benefits and improving service. The major trend of restructuring the power industry and establishing a power market has been recognized by the major countries over the world and worldwide power industry reform is vigorously developing. This paper discusses the reform of the power industry in China and the principles of a Chinese power market. Under the leadership of the State Economic and Trade Council, with the strong support from related government agencies, the State Power Corporation of China will push forward the pilot project of segregation of network and power plants and power pooling system, while the government play the dominant role in the process. The mandate of State Power is to set up a disciplined and orderly power generation market and strengthen the management on power producers so as to lower the generation cost and reduce the power tariff to customers. All of these will promote the development of national economy, meet the peoples' demand and enhance the social prosperity and advancement.