SHP replacing fuel project must be owed by the state

   ---The vice minister of Water Resources Mr. Suo Lisheng stated on April 14 that SHP replacing fuel project must be owned by the state to ensure the long-tern provision of cheap electric power for peasants' cooking and heating.

   Mr Suo made the above remark at the live meeting of national SHP replacing fuel pilot site, and he said that SHP replacing fuel project differs with conventional SHP development project. The main purpose of conventional SHP development project is to obtain the economic benefits and solve the issue of local economic development, while the main mission of SHP replacing fuel project is to provide clean and cheap alternative energy source for peasants and liberate the peasants from the smoke of burning firewood or coal. The latter project can also reduce the destruction to the ecological environment, effectively strengthen the project of returning the grain plots to forestry and protecting forest vegetation. Therefore, SHP replacing fuel project must be owed by the state to guarantee that the electricity price won't rise.

    Mr Suo pointed out that since the implementation of SHP replacing fuel project over one year ago, the electricity price has been kept at about RMB 0.19 Yuan so that the peasants are willing to use it, able to afford it and for a long time. At present the revenue from the power station could basically cover the cost and make small profit. Therefore, a long-acting system must be established in order to keep on the "popular-feeling project" and avoid selling the power station or increasing the price, if the local problem emerges in several years.

    He also emphasized that the running system of decentralization in proprietary, right of use and right of operation SHP replacing fuel project must be insisted on. The proprietary of power station is owed by the state. As the representative of investment, province-level water administration department fulfills the duty of the supervision and management in national capital of SHP replacing fuel project, of maintaining and incrementing its value so as to guarantee the long-term operation of SHP replacing fuel project and the realization of ecological, social and peasants' benefit. The project legal person is responsible to sign the agreement of power purchase with the power supplier, formulate the management methods of metering electric power, tariff collecting and safety in power consumption. The right to use the electricity from SHP replacing fuel belongs to the rural households, so peasants have the right to use the ecological electricity according to the electricity price and certain amount. At the same time, they shoulder the responsibility and obligation of protecting the forest vegetation and no longer felling trees. The tripartite management system of power has effectively restricted all kinds of short-sighted behaviors to guarantee the long-term provision of affordable electricity for peasants.(2005-04-27)