Provincial and city authorities have been instructed to designate the Three Gorges Power Station as a top source for electric power, according to an official from China’s State Economic and Trade Commission (SETC). The first generating unit of the Three Gorges Power Station (click here to see map) is expected to start operation in 2003. Local authorities are also required to compile budgets for electric power during the upcoming 10th Five-Year Plan (2001 to 2005), reports the Nov. 6 Zhongguo Jingji Shibao (China Economic Times). The official said that the standard price of power produced by the Three Gorges Power Station is not designed to be any higher than normal. Provinces and cities, the primary customers of this electrical power, should not notice any rise in price. However, power station executives are expected to set different seasonal prices according to the periodic shifts between flood and dry seasons. Rising waters, falling prices The official said the Three Gorges Power Station would generate more electricity during flood seasons and sell it at lower prices. Generating more electricity during periods of flood should decrease water waste and help secure greater market share over thermal plants, according to the report. Authorities in charge of power distribution have been forbidden to buy electricity from small thermal plants scheduled for termination or already closed by the government. Large corporate consumers will be permitted to negotiate directly with the Three Gorges Power Station to determine the price they pay for power, the story said. The official also disclosed that the Three Gorges Power Station would consider local-market conditions when setting prices to create competitive pricing. The station is likely to have a reasonable difference in price depending on both the quality of power and the quantity due to different generating periods. The government will gradually eliminate small thermal plants, the official added. The State Council has determined that in areas served by the Three Gorges Power Station, small thermal plants with expired contracts, plants with high energy consumption and plants with heavy polluters will be shut down by 2003, the article said.