By Yu Huapeng
News, Special Report, Issue 567 to 571
Translated by Tang Xiangyang
Original articles: [Part i, Part ii, Part iii, Part iv]
In 1996, the State Electric Power Corporation (SEPC) was founded. At that time, the relationship between employees of the SEPC and the Ministry of Electricity and Industry was very complex, with some individuals holding dual roles as both owners and power industry regulators.
In March of 1998, the Ministry of Electricity and Industry was dismantled. The supervision of the State Electric Power Corporation was transferred to a department within the National Economics and Trade Committee (NETC).
Though many observers at the time thought that the goal of separating regulators from players had been achieved, in reality, the State Electric Power Corporation continued to dictate policy and remained a powerful decision maker in the industry.
The State Electric Power Corporation was later placed under the State Planning Commission (SPC), the precursor to today's National Development and Reform Commission, and this body was much better at regulating the powerful monopoly, in time it became the major policy-setting organization in the energy industry.