1、Recent reports of a privately-owned power plant offering lower fees to local users has ignited heated debate about utilities management here in China.CRIs Wang Xiao has the story.Weiqiao Pioneering Group, a conglomerate in east Chinas Shandong Province, has interests ranging from textiles to electri
2、city. This substantial company found itself in the center of a debate after its found to be selling its electricity to nearby factories and households at prices over 30 percent lower than those offered by the countrys national grid.Though widely welcomed by the public, doubts have been raised over t
3、he validity of the practice because, although China allows private capital in electricity generation, the following stages of transmission, distribution and sale of electricity remain under firm government control.But to Chinese consumers who have long grumbled about a monopoly that grants state-con
4、trolled power companies unrestrained rights to set prices, the message is simple and clear: with more competition, costs and prices can be brought down. Ms. Wang is a resident who agrees this idea.The state-owned power companies are complaining about losses, but the price offered by Weiqiao is low.
5、Therefore, I believe that the electricity prices set by the national grid can be lowered, and there are so many things that should be published.But instead of simple price considerations, what has really bothered Chinese consumers is a lack of transparency on the part of state-linked firms.For examp
6、le, Chinas power companies only make public the on-grid price and the final selling price, leaving the majority of people in the dark about transmission and distribution costs. This has triggered doubts over their profit margins. However, these companies have constantly blamed their financial pressu
7、res on the widening gap between the government-set electricity price and the market-oriented coal price.Ouyang Changyu, Deputy Secretary General of China Electricity Council says the key solution lies in the reform of the pricing mechanism.The power industry should adopt market principles as soon as
8、 possible. The authorities shouldnt just set one price standard for all. The price should reflect the supply and demand relationship as well as the scarceness of the resources. It should also meet the requirements of environmental protection and quality of service.Energy academics suggest that China encourage private investment and carry out pilot schemes in key areas in order to reform electricity pricing.For CRI, Im Wang Xiao.
