New Rules for Electricity Suppliers

2005/12/15

China's watchdog for the electricity industry, the State Electricity Regulatory Commission of China (SERC), will introduce a certification system from January 2006 to improve the regulation of the industry, according to China Daily.

Separate certificates will be issued to companies in the power generation, transmission and supply sectors after governmental approval, SERC said on November 18.

Power firms need to provide information about such things as their business portfolios, financial status and environmental performance for assessment.

Those that do not comply with SERC-set regulations will not be allowed to continue trading.

According to the SERC regulations, all electricity transmission companies, 70 percent of the country's grid-connected power-generation plants, and 150-200 electricity supply firms will have to apply for certificates.

That figure will increase on an annual basis until 2010 when all firms involved in electricity supply will have to hold the new certificate.

China, the world's second-biggest energy consumer after the United States, is deepening reforms in the electricity sector by introducing more market mechanisms.

This is part of the government's move to split the big State power monopoly into several electricity generation and distribution companies.



	Article featured in Business Beijing, December 2005 Publication sponsored by Information Office of the Beijing Municipal Government, Beijing Municipal Bureau of Commerce, Development & Reform Commission of Beijing Municipality, China Council for the Promotion of International Trade (Beijing Sub-Council)