EXECUTIVE SUMMARY 1. HIGHLIGHTS OF CHINA’S POWER INDUSTRY 1.1 ENERGY CONSUMPTION 1.2 PHYSICAL SCALE 1.3 PER CAPITAL LEVEL 1.4 INDUSTRY OWNERSHIP STRUCTURE 1.5 GENERATION 1.6 TRANSMISSION AND DISTRIBUTION 1.7 RETAIL 1.8 ENERGY TRADE 2. REGULATORY FRAMEWORK 2.1 INSTITUTIONAL STRUCTURE 2.2 INSTITUTIONAL RESPONSIBILITIES 2.3 DIFFERENT ROLES OF CENTRAL AND LOCAL GOVERNMENT 2.4 LEGAL ISSUES 3. STRUCTURAL REFORM 3.1 BRIEF REVIEW 3.2 THE LATEST STEPS 3.3 AGENCIES RESPONSIBLE FOR REFORM 3.4 FUTURE STEPS OF REFORM 4. CHALLENGES FACING THE POWER INDUSTRY 4.1 EFFECTIVENESS AND EFFICIENCY 4.2 COMPETITION 4.3 DEREGULATION 4.4 SECURITY AND STABILITY 4.5 ENVIRONMENT PROTECTION 5. IMPLICATIONS TO AUSTRALIA POWER INDUSTRY 6. CONCLUSIONS