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Experience and challenges of SPG in the business of power distribution and retail

Shaanxi Regional Electric Power Group Co., Ltd (SPG) is a state owned regional power company and directly belongs to the People's Government of Shaanxi Province in China. In 1989 the former SPG was set up and began its main business of electricity distribution and retail, which was simultaneously along with worldwide electric market reform. As an independent distribution and retail company in China, SPG has got a 26-year development history. This paper presents SPG's main experience of power distribution and retail, in particular the organization framework and business operation mode, and discusses the challenges with the New Electricity Reform in China. These experiences may be valuable to new retail companies set up under the present electric reform in China and be comparable with distribution and retail companies abroad.