On March 20, 2003, the State Power Supervision Commission was established formally as approved by the State Council. As the first supervisory body in basic industries of China, the Commission will greatly contribute in promoting sustained and sound development of the power industry and lay a structural foundation for optimized disposition of power resources.

As approved by the State Council, the Commission shall be in charge of supervising and administering the power industry throughout the country, form a unified system of supervision and administration and exercise vertical leadership to its agencies. It shall investigate and put forward recommendations to enact or revise supervisory laws and regulations on the power industry and lay down rules and regulations for electric power supervision and regulations of electricity market operation; participate in the drawing up of national development program of the power industry, draft development planning of power market and set-up schemes of regional power market, and examine and approve operating modes of power market and set-up schemes of power dispatch and exchange organizations; supervise electricity market operation, normalize electricity market orders, safeguard fair competition, and supervise transmission, supply and noncompetitive generation businesses; participate in the laying-down of standards for power technique, safety, quota and quality and inspect the execution of those standards, issue and manage licenses for power operation, and check up environmental policies, regulations and standards to be carried out by the power sector in coordination with environmental protection bodies; put forward suggestions of price readjustment to compete government departments and inspect power pricing and tariff standards for auxiliary services in the light of market conditions; investigate activities in violation of laws and rules in electricity market and of power enterprises and settle disputes occurring in electricity market according to relevant laws.

In addition, the Commission shall be responsible for supervising the implementation of general power service in the whole society, research and put forward recommendations on adjustment of associated policies, and have charge of conducting market statistics and releasing market information. According to the arrangement of the State Council, the Commission shall make a plan for power restructure and offer suggestions on deepening power reformation.

Longyangxia Hydropower Station (1280 MW), Qinghai Province 

The State Power Regulatory Commission has seven functional departments. In the short period to come, the Commission has to carry out the following key works, that is, to advance a structural reform of the power industry, to speed up the construction of laws and regulations, to push ahead with the construction of electricity market, and to accelerate the construction of a system of supervisory organizations.