On-grid Tariffs Adjustment

RNS Number:0908A
Zhejiang Southeast Elec Power Co Ld
24 June 2004

Zhejiang Southeast Electric Power Company Limited

Announcement on Adjustment of On-grid Tariffs



According to the Notice on Issues including the Zhejiang Provincial Power Grid
Unified Allocation of On-grid Tariffs of Power Plants by the State Development
and Reform Commission (Zhe Jia Shang (2004) No.155) issued by Zhejiang
Provincial Price Bureau, within the unified allocation scope of the Zhejiang
power grid, the power generation utilization hours of the coal-fired generating
units implementing the State-approved tariffs are 5,500 hours and the
electricity volume in excess of the power generation utilization hours
implementing the State-approved tariffs shall implement the excess generation
tariff of RMB0.328/kwh (including tax).

The on-grid tariffs of the power generation enterprises, which are wholly-owned
and controlled by Zhejiang Southeast Electric Power Company Limited ("the
Company") will be adjusted as follows:


     Name of the power      On-grid tariff (including tax)       On-grid tariff  (including tax)
   generation enterprise           after adjustment                     before adjustment
                                      (RMB/kkwh)                           (RMB/kkwh)

                                 Power                         
                              generation                        
                              utilization        Power       Power generation                                       
                                 hours        generation     utilization hours                     
                            less than or      utilization      less than or       Power generation
                            equal to  5500   hours > 5500     equal to 6000       utilization hours
                                 hours           hours             hours            >  6000 hours



                                                              80%       20%         80%        20%
                                                                       (Note)                (Note)

Taizhou Power Plant               419             328         419       419         247        419


Xiaoshan Power Plant              388             328         381       381         243        381


Zhejiang Changxing Power          388             328         387       387         New        387
Co., Ltd.                                                                       generating
                                                                                units (not
                                                                                 decided)



Note:  Due to the power shortage, Zhejiang power market has suspended price
bidding from July 2003, so the price-bidding portion of the on-grid electricity
will be settled according to the contract price.



The above tariff adjustment has been implemented from 15 June 2004.



Estimated according to the budgeted power generation utilization hours for 2004,
basically the main operating income of the Company will not be affected by the
tariff adjustment.






                              Board of Directors
                    Zhejiang Southeast Electric Power Company Limited
                                24 June 2004


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