Beijing restarts power sector reform
Overhaul of grid transmission and distribution tariffs will ultimately intensify competition so that the stronger generators take market shareBeijing has restarted the mainland's power sector reform engine by overhauling the way power grid transmission and distribution tariffs are set.
The reform, first envisioned in 2002 when former industry behemoth State Power Corp was broken up, will in the long term intensify competition among power generators so that stronger ones will take market share from weaker ones.
It will pave way for the liberalisation of upstream on-grid prices charged by power producers and introduce competition in the downstream retail segment, while allowing new entrants to break the state-owned distribution monopolies' grip on last-mile distribution.
The ultimate goal of the restructuring is to enhance efficiency and reduce costs for the entire supply chain, which will benefit major users such as metals smelters, as well as billions of residential users.
Full article: http://www.scmp.com/print/business/china-business/article/1727065/beijing-restarts-power-sector-reform
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