Foreign investors in mainland power plants should largely escape the costs of tariff reform, according to China Datang Group president Zhai Ruoyu. 'The nation's policy towards foreign investors over power plant [investment] is not changing despite the power reform, but [terms of] some projects may need to be renegotiated,' he said. Provinces in which foreigners would be affected the most would be those where power supply outstripped demand, he said. Guangdong, where Hong Kong interests have invested heavily, would not be one of those areas as the province suffered a power shortage. There have been suggestions that foreign investors will need to renegotiate their power-purchase contracts with local authorities as Beijing implements a competitive tariff scheme as part of an industry overhaul. Such a move would effectively scrap the guaranteed-price purchase agreements of foreign investors. In January, a mainland media report cited a China Electricity Regulatory Commission source as giving details about the newly established industry watchdog's long-term plan to implement power pooling and tariff bidding. A compensation mechanism had been proposed where foreign investors would be compensated by proceeds from the sale of state power assets, the report said.