Restructuring China's Power Sector

On December 29 2002, China officially announced the completion of its power sector restructuring, and the reorganization of the State Power Company's (SPC) assets. The restructuring plan is consistent with the principles set out in an announcement from the State Development Planning Commission (SDPC) on April 11 2002, and involves three main components: (1) the separation of SPC's power generation and distribution assets and the designation of 11 enterprises that will acquire such assets; (2) market deregulation, including the introduction of power pooling and power pricing reforms; and (3) the establishment of a new regulatory body, the State Electricity Regulatory Commission (SERC), to oversee the power industry.

Power Generation and Distribution Assets

SPC's power generation assets will be allocated to five power generation companies. These are: Huaneng Power International; Beijing Datang Power Generation; Shandong International Power Development Company; SP Power Development Company; and China Power International Holdings.