State Grid vows to com­plete re­forms

China Daily European Weekly - - Business - By ZHENG XIN zhengxin@chi­

State Grid Corp of China, the na­tion’s elec­tric power gi­ant, has pledged to com­plete key in­ter­nal cor­po­rate re­forms by Novem­ber as part of its ef­forts to make the util­ity com­pany more stream­lined, ef­fi­cient and mar­ket-fo­cused.

Com­pany spokes­woman Wang Yan­fang told a news con­fer­ence on Sept 11 that State Grid is con­fi­dent it will im­prove its cor­po­rate gov­er­nance struc­ture and stream­line its man­age­ment hi­er­ar­chy, in or­der to deepen in­ter­nal re­struc­tur­ing and help cre­ate ef­fec­tive cor­po­rate gov­er­nance and an ef­fi­cient man­age­ment struc­ture.

The re­forms would be com­pleted on sched­ule, while the new struc­ture would help clear in­sti­tu­tional bar­ri­ers and en­hance the com­pany’s op­er­a­tional efficiency, she said.

The re­form is part of the wider SOE re­forms ad­min­is­tered by the Sta­te­owned As­sets Su­per­vi­sion and Ad­min­is­tra­tion Com­mis­sion, coun­try’s top reg­u­la­tor of SOEs.

The State Coun­cil, China’s cab­i­net, is­sued an ac­tion plan this year or­der­ing the coun­try’s ma­jor SOEs su­per­vised by the cen­tral gov­ern­ment, ex­clud­ing fi­nan­cial and cul­tural en­ter­prises, to com­plete cor­po­rate re­forms by the end of 2017. These will help sep­a­rate the gov­ern­ment from busi­ness op­er­a­tions by re­struc­tur­ing SOEs into lim­ited li­a­bil­ity com­pa­nies or cor­po­ra­tions.

State Grid has also con­ducted pro­ject in­vest­ment bud­get man­age­ment sys­tem re­form in re­cent years, which has saved 40 bil­lion yuan ($5.97 bil­lion; 4.98 bil­lion euros; £4.48 bil­lion) an­nu­ally.

The debt ra­tio of 55.9 per­cent also makes the com­pany one of the best among the For­tune Global 500 com­pa­nies, it said.

An­a­lysts say State Grid’s moves will see an im­proved mar­ket fo­cus and a more flex­i­ble com­pany, mak­ing it more vig­or­ous and com­pet­i­tive in the the global mar­ket­place.

Li Jin, chief re­searcher at the China En­ter­prise Re­search In­sti­tute, says that the re­forms will help the cor­po­ra­tion be­come more mar­ket-fo­cused and flex­i­ble.

State Grid says it will also con­tinue to ex­pand pub­lic fast-charg­ing net­works for elec­tric ve­hi­cles as part of its struc­tural re­form, while vow­ing to build the largest quick charg­ing net­work for elec­tric cars in the world, span­ning 16,000 kilo­me­ters of ex­press­ways in 121 cities of 16 prov­inces.

As many as 167,000 charg­ing posts will be built, ac­count­ing for 80 per­cent of the to­tal pub­lic charg­ing posts in the coun­try and of­fer­ing charg­ing ser­vices to 1 mil­lion elec­tric cars.

The fast-charg­ing net­works will of­fer ser­vices such as charg­ing, resource mon­i­tor­ing and in­for­ma­tion shar­ing, said Wang.

The charg­ing stan­dard sys­tem for elec­tric cars es­tab­lished by the com­pany is one of the ma­jor stan­dards in the world, along with three other stan­dards de­vel­oped by com­pa­nies in the United States, Ger­many and Ja­pan, she said.

The Na­tional En­ergy Ad­min­is­tra­tion said ear­lier that, in or­der to en­able users to power up within a close ra­dius of their lo­ca­tion, the coun­try plans to build 800,000 charg­ing points this year, in­clud­ing 100,000 pub­lic ones, for elec­tric ve­hi­cles to meet in­creas­ing de­mand.

A to­tal of 100,000 pub­lic charg­ing points were in­stalled na­tion­ally last year, a ten­fold in­crease over 2015, bring­ing the to­tal num­ber of pub­lic charg­ing points in China to 150,000, it said.

Asian util­i­ties and in­fra­struc­ture an­a­lyst Joseph Ja­co­belli from Bloomberg In­tel­li­gence says China is mo­ti­vated to boost the pop­u­lar­iza­tion of elec­tric ve­hi­cles in ma­jor cities, con­sid­er­ing the coun­try’s air pol­lu­tion.

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