Do the Power Sector Reforms in China Reflect the Interests of Consumers?

Abstract

China's electrical power industry has been undergoing piecemeal reforms over the last 15 years. Some of these reforms, such as substantial tariff increases, have been deliberate and have been implemented directly by government. Other changes, such as the increased variety of investors, including foreign investors, have been more spontaneous and have resulted in a gradual evolution in the way the industry works. In 1996 the Chinese government announced a more radical package of reform starting with the new Electricity Law which laid the foundations for a degree of competition in power generation, but without wholesale privatization.