In March 2002, the State Council officially approved the power system reform plan.
On April 1 1, the State Planning Commission announced the contents of the power system reform plan.
The main content of the power system reform is that in order to introduce competition mechanism into power generation, we must first realize "separation of power plant and power grid" and divide the power assets managed by the state power company into two types of business: power generation and power grid. In the power generation link, according to the requirements of modern enterprise system, the power generation assets managed by the State Power Company will be directly reorganized or reorganized into five national independent power generation companies with roughly the same scale, and "competitive bidding" will be gradually implemented to conduct fair competition. State Grid Corporation and China Southern Power Grid Co., Ltd. were established in the power grid. State Grid Corporation has five regional power grid companies in North China, Northeast China, East China, Central China and Northwest China. State Grid Corporation is mainly responsible for power trading and dispatching between regional power grids and participating in the investment and construction of cross-regional power grids; Regional power grid companies are responsible for the operation and management of power grids, ensuring the safety of power supply, planning the development of regional power grids, cultivating regional power markets, managing power dispatching and trading centers, and dispatching power according to market rules. Provincial power companies in the region can be reorganized into branches or subsidiaries of regional power grid companies.