Roussely, Chairman and CEO of EDF speeches in Guangzhou, Guangdong Province

China's power industry should beware two kinds of enterprise models during its ongoing industrial reform, said Roussely, Chairman and CEO of EDF, today (Nov. 4th) at a speech in Guangzhou, Guangdong Province.

In a speech named "Harmonious Relationship between Economical Development and Social Development", Roussely said China should develop neither a closed state-owned power enterprise nor an ivory-towered enterprise model that ignores real circumstances of the country.

As one of the new advisors of Guangdong's Governor, Huang Huahua, this veteran put hopes on "the third-generation power enterprises".

In his speech, Roussely classified the evolution of power enterprises into 3 stages: State-Owned Enterprises, Private Enterprises and the Third Generation Enterprises.

As Roussely see it, power is a product that is hard to classified, because it cannot be stored, and is relatively steady in price. Electric power is a collective product. It is produced by a huge system, and is consumed by people of all social levels. Even in liberal economy, electric power projects are all government-oriented. But, a state-owned electric power enterprise has its disadvantages: slowness in reaction and lack of funds.

Private power enterprises have drawbacks also. Roussely think private enterprises are generally shortsighted, and are not responsible for social benefits in the long run. How to achieve a balance between social welfare and ecumenical development in this special industry? The solution is the Third Generation Enterprises. Roussely believes that the Third Generation Enterprise is the kind of enterprise that on one hand is a part of the global market, and on the other hand is responsible for the whole society.

Editor: Donald