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China sells US$2.44b electricity assets to 31 firms

(chinadaily.com.cn)
Updated: 2007-05-31 10:57

The State Electricity Regulatory Commission today signed contracts with 31 enterprises, including State-owned and private corporations as well as overseas-funded ones, selling 18.7 billion yuan (US$2.44 billion) worth of electricity assets. This price is more than 65 percent of original estimates.

Early in 2002, China distributed State electricity assets to five large electricity groups such asChina Huaneng Group. Meanwhile, the country reserved 920 kW assets for electrical enterprise reforms and now these assets have increased to a capacity of over 10 million kW. These reserves were sold today.

This is the first step for electricity reforms as part of the11th Five-Year Program, which focuses on building an electricity market system, reforming electricity prices and separating electricity transmission and distribution. You Quan, chairman of the commission, said, "Electricity assets will further enter into the market under the government's management to break monopolies and help China's economic development."