The reform of electricity power sector in the PR of China

Deregulation was launched as a concept in the United States more than a decade ago; the European Union Commission has also formally announced that electric deregulation must be completed by the end of 2005. Deregulation or reform has already been a popular topic on the Electricity Power Sector. This paper will discuss the restructuring and regulatory reforms in the PR Chinaʹs power sector. It begins with a discussion of the characteristics of electricity reform or deregulation in other countries, including the US, the United Kingdom, and so on. It will be followed by the industry structure and regulatory framework that characterized Chinaʹs power industry during the latter part of the 20th century and the history of Chinaʹs reform to restructure the power industry to competitive suppliers of generating services in recent years. It discusses the role of the State Power Corporation in the reform and gives a detailed description of the latest electricity reform in the year 2002. The paper concludes with some thoughts regarding future challenges and trends on the reform for Chinaʹs power sector.