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Electric Power Institutional Reform Blueprinted

Sources from the Conference of Local Electric Power Investment Committees called by China Investment Association in Fuzhou told that the State Council might approve the plan for a reform of national electric power system.

According to the plan, efforts will be made to obtain a new system in line with the need for the development of socialist market economy by 2010. Namely, the power users shall have the right to select power station, on base of which, a power market with Chinese characteristics will be formed. The government's role, however, is to guarantee fair play.

By the year 2005, power station and power network will be separated. Electric power prices will be based on market competition. Power stations can supply power directly to major users, in the meantime, users will be able to choose power suppliers.

(People's Daily 06/01/2001)

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