Power Tariff Reform and Energy Constraint in China

Power tariff reform and power restructuring should be coordinately advanced. In the period of the power tariff reform, attention should be fully given to possible demand growth, investment characteristics and environment pressure when taking transitional measures. In the stage, focal point of the reform is to establish a rational system of sales price to power network. Moreover, it is necessary to raise the electricity price for household consumption. The highly-centralized system of state-owned power enterprises is the root-cause of some basic problems in the power industry. The system would cause a great power overproduction, squeeze out private and foreign investment and constrain efficiency improvement. Effective energy strategy and planning are a crux of dealing with crises of energy security. China needs a state-class energy administration body and should make massive research on energy economics.