By Li Shantong, Hou Yongzhi, Liu Yunzhong, Wang Guohua　

Date: 2004/02/26

Abstract: 　　

More investment to the electric network is needed to secure a stable and safe operation of the power supply system and to facilitate the sustained and healthy development of the national economy. However, the irrational electricity transmission and distribution prices are holding down the returns to such investment, which seriously impeded further investment in the industry and raised the operational risks. A suggestion is made to establish an independent mechanism for power pricing according to the principle of reasonable returns on investment, which will be translated into properly raising power transmission and distribution prices, setting up power grid construction funds, expanding the scope of investment participants, and listing the national power grid company as a whole to raise financial resources.