Reports on the efforts by the Shanghai Municipal Council Electricity Department (SMED) to supply electricity to the majority ordinary residents at cheaper rates, in spite of he many difficulties experienced in the past (competition between domestic/industrial uses). Identifies three phases in the SMED policy: (1) the boom period (SMED's inability to meet with the growing demand (2) the period of competition (installation of concurrent private plants to compensate deficiencies, yet still unable to satisfy both the domestic and industrial demand) (3) the establishment of franchise to individual private suppliers, in exchange of the promise to supply electricity at reasonable prices