After years of stagnation in electricity price reform, it is expected to start again. According to the reporter’s understanding, CEC is conducting an analysis and research on the issue of electricity price reform and proposes a medium-to-long-term road map for electricity price reform. In its proposed reform path, "enhance electricity price level" is placed first in the near-term goal.
Power generation accesses the Internet and promotes the two-part tariff The reform path proposed by the CEC is to implement and improve coal-fired (gas-to-electricity) linkage mechanisms in 2011-2013; implement two-part tariffs for power generation access; study and formulate implementation rules and carry out independent transmission and distribution Electricity price reform pilot; continue to launch large-scale user direct supply pilot; advance time-share price and ladder price; increase electricity price level. From 2014 to 2015, the power generation and internet access has fully implemented the two-part tariff; full implementation of independent transmission and distribution tariffs; expanded direct supply of large-scale users; optimized sales price structure; and piloted pilot projects for medium-sized power users. During the “Thirteenth Five-Year Plan†period, two-part tariffs were formed by competition, medium-sized users directly selected power sellers, optimized the sales price structure, implemented a market-based electricity price mechanism with Chinese characteristics, and launched pilot competitions for electricity sales.
The above-mentioned reform ideas are consistent with the concept of the "Electricity Price Reform Plan" issued by the General Office of the State Council in 2003. The CEC will report the above research results to the national department for reference by policy makers. If this series of reforms is implemented, the issue of the electricity price mechanism that has plagued China for a long time is expected to be resolved within the next 10 years.
Regarding why the “increased electricity price level†was placed at the top of the near-term target, an electrician explained that “since the electricity price formation mechanism has not been straightened out, the power companies are very uncomfortable. Coupled with the relative lag in tariff adjustment, the contradiction between coal and electricity is outstanding. According to industry statistics, the investment enthusiasm of thermal power companies is declining. From January to November 2011, the installed capacity of newly-started power generation in the country was reduced by 12.16 million kilowatts from the same period of the previous year, of which the scale of newly-started thermal power plants was reduced by 10.36 million kilowatts from the same period of last year. CEC repeatedly mentioned in its analysis of the power industry that “if this situation cannot be improved, it will seriously affect the sustained and stable supply of electricity in the next few yearsâ€.
The electricity price reform should be synchronized with the reform of the electricity system. In addition to the increase in electricity prices, the electricity price reform program of CEC focuses more on institutional reforms—market-based reform of on-grid tariffs, implementation of independent transmission and distribution tariffs, introduction of joint sales tariffs, and direct access for large users. Every small step in the transaction pilot work will be a major step in the reform of the electricity pricing mechanism.
The reform of electricity prices is the core content of the reform of the electric power system and needs institutional reform as a support. Feng Fei, Minister of Industry of the Development Research Center of the State Council, believes that “the reform of electricity prices cannot be a sudden emergence and that the reform of the electric power system should be promoted simultaneously. The first is to establish a market mechanism for bidding online.†Since 2002, the electricity system reform has separated the plant and the network, and separated the main and auxiliary systems. In addition, there has been little substantive progress outside of work such as bidding for the Internet and separation of transmission and distribution. The State Electricity Regulatory Commission was set up during the reform, but in recent years it has not made any substantial push for the reform, and it has remained at the level of research and policy recommendations.
Even so, SERC still hopes to make a difference in the level of power system reform. "There is only one place for good." This is the concept of Wu Xinxiong, the current chairman of the State Electricity Regulatory Commission. On January 10, Wu Xinxiong proposed at the annual work conference of the State Electricity Regulatory Commission that the Electricity Regulatory Commission will study the top-level design and reform roadmap of the power reform and put forward suggestions for deepening the operation plan of the power system reform in the “Twelfth Five-Year Planâ€.
Terminology Explanation The two-part tariff is a two-part tariff, which is the electricity price system implemented by the power supply sector for large industrial enterprises. It divides the electricity price into two parts: the basic electricity price and the electricity price. The basic electricity price is based on the transformer capacity or the maximum demand of the industrial enterprise (ie, the maximum value of the average load every 15 minutes or 30 minutes in January) as the basis for calculating the electricity price. The power supply department signs a contract with the electricity use department, determines the limit, and collects the monthly fixed charge. It does not use the actual amount of electricity to be transferred. The electricity price is the electricity price calculated based on the actual power consumption of the electricity department.
Power generation accesses the Internet and promotes the two-part tariff The reform path proposed by the CEC is to implement and improve coal-fired (gas-to-electricity) linkage mechanisms in 2011-2013; implement two-part tariffs for power generation access; study and formulate implementation rules and carry out independent transmission and distribution Electricity price reform pilot; continue to launch large-scale user direct supply pilot; advance time-share price and ladder price; increase electricity price level. From 2014 to 2015, the power generation and internet access has fully implemented the two-part tariff; full implementation of independent transmission and distribution tariffs; expanded direct supply of large-scale users; optimized sales price structure; and piloted pilot projects for medium-sized power users. During the “Thirteenth Five-Year Plan†period, two-part tariffs were formed by competition, medium-sized users directly selected power sellers, optimized the sales price structure, implemented a market-based electricity price mechanism with Chinese characteristics, and launched pilot competitions for electricity sales.
The above-mentioned reform ideas are consistent with the concept of the "Electricity Price Reform Plan" issued by the General Office of the State Council in 2003. The CEC will report the above research results to the national department for reference by policy makers. If this series of reforms is implemented, the issue of the electricity price mechanism that has plagued China for a long time is expected to be resolved within the next 10 years.
Regarding why the “increased electricity price level†was placed at the top of the near-term target, an electrician explained that “since the electricity price formation mechanism has not been straightened out, the power companies are very uncomfortable. Coupled with the relative lag in tariff adjustment, the contradiction between coal and electricity is outstanding. According to industry statistics, the investment enthusiasm of thermal power companies is declining. From January to November 2011, the installed capacity of newly-started power generation in the country was reduced by 12.16 million kilowatts from the same period of the previous year, of which the scale of newly-started thermal power plants was reduced by 10.36 million kilowatts from the same period of last year. CEC repeatedly mentioned in its analysis of the power industry that “if this situation cannot be improved, it will seriously affect the sustained and stable supply of electricity in the next few yearsâ€.
The electricity price reform should be synchronized with the reform of the electricity system. In addition to the increase in electricity prices, the electricity price reform program of CEC focuses more on institutional reforms—market-based reform of on-grid tariffs, implementation of independent transmission and distribution tariffs, introduction of joint sales tariffs, and direct access for large users. Every small step in the transaction pilot work will be a major step in the reform of the electricity pricing mechanism.
The reform of electricity prices is the core content of the reform of the electric power system and needs institutional reform as a support. Feng Fei, Minister of Industry of the Development Research Center of the State Council, believes that “the reform of electricity prices cannot be a sudden emergence and that the reform of the electric power system should be promoted simultaneously. The first is to establish a market mechanism for bidding online.†Since 2002, the electricity system reform has separated the plant and the network, and separated the main and auxiliary systems. In addition, there has been little substantive progress outside of work such as bidding for the Internet and separation of transmission and distribution. The State Electricity Regulatory Commission was set up during the reform, but in recent years it has not made any substantial push for the reform, and it has remained at the level of research and policy recommendations.
Even so, SERC still hopes to make a difference in the level of power system reform. "There is only one place for good." This is the concept of Wu Xinxiong, the current chairman of the State Electricity Regulatory Commission. On January 10, Wu Xinxiong proposed at the annual work conference of the State Electricity Regulatory Commission that the Electricity Regulatory Commission will study the top-level design and reform roadmap of the power reform and put forward suggestions for deepening the operation plan of the power system reform in the “Twelfth Five-Year Planâ€.
Terminology Explanation The two-part tariff is a two-part tariff, which is the electricity price system implemented by the power supply sector for large industrial enterprises. It divides the electricity price into two parts: the basic electricity price and the electricity price. The basic electricity price is based on the transformer capacity or the maximum demand of the industrial enterprise (ie, the maximum value of the average load every 15 minutes or 30 minutes in January) as the basis for calculating the electricity price. The power supply department signs a contract with the electricity use department, determines the limit, and collects the monthly fixed charge. It does not use the actual amount of electricity to be transferred. The electricity price is the electricity price calculated based on the actual power consumption of the electricity department.
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