Beijing, June 12: China has announced that the country's first regional electricity market would be established within this year, ending the monopoly held by big power companies. The move was considered historic in the break-up of the monopoly of the electricity sector and would trigger the restructuring of the sector, a spokesman of the State Electricity Regulatory Commission (SERC) said.
The regional electricity market will take shape in China's north-eastern provinces of Liaoning, Jilin and Heilongjiang. It will also cover Chifeng and Tongliaoin cities and Hinggan and Hulun Buir leagues (prefectures) in the inner Mongolia autonomous region.
The north-eastern electricity market will undergo trial operations at the end of October and begin formal operations in January 2004.
The north-eastern power grid company was expected to be established soon, said the spokesman, referring to the establishment as a priority for China's opening of the regional electricity market.
The SERC has planned to complete the supervision system over the north-eastern electricity market by introducing a series of related pricing policies and boosting market competition within the region, the spokesman said.
The establishment of an electricity futures market was also on the commission's agenda, he added.
The commission would approve the plan to establish a north-eastern regional electricity market before the end of July and two more similar regional electricity markets would be created in the eastern and southern regions within the year, the SERC chairman, Chai Songyue said. Bureau Report