The country continues to deepen electricity price reform

The ultimate goal of electricity price reform is that electricity generation and electricity sales prices are formed by market competition, and transmission and distribution prices are set by the government. In accordance with this reform goal, in the first half of this year, we actively promoted price reforms in terms of on-grid tariffs and sales tariffs.
The first is to improve the renewable energy power generation price policy. In order to standardize wind power price management, the “Notice on Improving the On-grid Electricity Price Policy for Wind Power Generation” was issued. According to the status of wind energy resources and construction conditions, the whole country will be divided into four types of wind resource areas, and the on-grid tariffs for wind power benchmarks will be formulated accordingly. On the one hand, by pre-announcement of benchmarking price levels, investors will be provided with clear investment expectations, encourage the development of quality resources, limit the development of inferior resources, and promote the orderly development of wind power development; on the other hand, it will also encourage wind power enterprises to continue Reduce investment costs and operating costs, improve operational management efficiency, and promote the healthy development of the wind power industry.
The second is to promote direct transactions between power users and power generation companies. In March of this year, the 20% sales market was clearly released. For large industrial users who are in line with national industrial policies and whose power voltage level is above 110 kV, they are allowed to purchase electricity directly from power generation companies, and encourage both suppliers and buyers to negotiate pricing. In June, the State Administration of Electricity Regulatory and the National Energy Administration jointly issued the Notice on Improving the Pilot Work on Direct Trading of Power Users and Power Generation Enterprises to further standardize and guide the pilot work of direct trading of power users and power generation enterprises. The introduction of these policies has further promoted the reform of electricity prices, which is conducive to the introduction of competition mechanisms, increase the choice of power users, and promote the formation of a reasonable electricity price mechanism.
The third is to clean up and rectify the preferential electricity price. For some provinces, the introduction of preferential electricity prices for high-energy-consuming enterprises is not conducive to promoting the structural adjustment and industrial upgrading of high-energy-consuming industries. After approval by the State Council, the Commission and the State Electricity Regulatory Commission and the National Energy Administration jointly issued the Notice on Clearing Up Issues Concerning Preferential Electricity Prices, in the name of bilateral transactions of power generation and power companies, etc., to reduce the on-grid tariffs of power generation enterprises or the sales price of electricity-using enterprises, and to comprehensively clean up the preferential electricity price measures for high-energy-consuming enterprises. Promote the healthy development of the national economy.
In the next step, we will continue to deepen the electricity price reform in accordance with the established reform direction. Guide local direct pilots of power users and power generation enterprises; research and develop benchmark grid-connected electricity prices for large-scale grid-connected photovoltaic power plants, improve the price mechanism of biomass power generation; pay close attention to research and guide the method of issuing sales price classification structure, reduce cross-subsidy; further standardize energy trading Price management approach.

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