Preliminary Analysis Of China Electric Power Reform

China's electric power industry has made remarkable achievements since 1949. By the end of the 20th Century, its annual electric energy production has passed 120 million KW, ranked No. 2 world wide next to USA only, greatly resolved the power shortage for both industrial and civil users. However, with electric power industry's development, many disadvantages were revealed gradually which now mainly lied in following aspects: operation highly monopolized, low production efficiency and a relative lower capital profit margin compared to other industries. Because of the importance and special position to domestic economy and many people's acceptance of power industry's monopoly in the past, reform progress in China's power industry was very sluggish. Now, to try to find a practical way for power industry's reform, people conducted many theoretic researches and practical experiments. The significance and purpose of this article is that it re-defined the status of China's current power industry, analyzed the key obstacles of structural reform in current power industry, pointed out 2 major objectives for China power structural reform and put forward some suggestions for the whole industrial chain from electricity generation, transmission to its distribution and sales.Total 6 chapters in this article. Chapter 1 introduced China electric power industry's development history, current situation and key problems in this industry. Chapter 2 provided some structural reform experience of foreign countries as a reference to China's power industry and introduced the development trends of world power industry. Chapter 3 discussed the theoretic and practical foundation for power industry's structural reform and the necessity of this reform. Chapter 4 pointed out 2 major objectives for power industry's current structural reform based on the analysis of the situation and problems presently. Chapter 5 listed the key obstacles of power industry's structural reform. Based on this analysis, in Chapter 6, provided specific solution suggestions to these obstacles. Below is a summary for the contents and points of this article:Chapter 1 used positivism and analysis methods introduced electric power industry's development history in the past 50 years. Affirmed the achievement we made and pointed out key problems in present period as well. In the first 30 years after China's foundation, highly centralized planning administration is proper to China's economic situation then. During that period, electric power resources were very limited because of the low productivity. Central government must conduct restrict planning administration to ensure the effective use of power resources. When entering 1980s, the conflicts between productivity and administration system were seen with the development of the industry. Reform was taken in electricity generation section, issued new policy that allowing multi corporation to invest electric power plant. Some independent electric factories appeared under this policy. But these factories fell into an embarrassed situation soon, which pushed people to pay more attention to the reality of power industry's structural system. With these efforts, the disadvantages of current power system were discovered gradually. Breaking the monopoly became the 1st priority of the power structural reform requirement. Many researches were conducted regarding this subject, so do this article.Before the specific discussion, in Chapter 2, this article gave more details about foreign country's power system reform experience (take USA and UK for examples). In USA, the whole industry was opened to market. You could be a company for electricity generation only, and also could be a company to cover all the sections of the industry, including electricity generation, transmission and distribution. Companies could compete in any section of the industry chain and central government conducts the administration through laws/regulations and administrative organizations. To indicate the import...