The National Development and Reform Commission issued a notice on the market-oriented reform of coal-fired power generation on-grid tariffs, establishing a market-oriented tariff mechanism that "can fall and rise"

  Residents' electricity purchase method remains unchanged, and the price level remains unchanged

  Beijing News (Reporter Jiang Huizi) Under the background of tight supply and demand of coal and electricity, my country's coal-fired power generation on-grid tariffs ushered in reforms.

The reform promotes all coal-fired power generation on the power generation side and all industrial and commercial users on the power user side to enter the power market, supply and use electricity at market prices, and expand the fluctuation range of power prices to no more than 20%.

After the reform, the current price of electricity for residents and agriculture will remain unchanged.

  On October 12, the National Development and Reform Commission issued the "Notice on Further Deepening the Market-oriented Reform of Coal-fired Power Generation On-grid Tariffs" to implement the relevant arrangements made at the executive meeting of the State Council on October 8.

This notice is also officially called "an important step in the reform of the electricity market."

  All coal-fired power generation will enter the market

  From the perspective of the timeline of my country’s electricity price reform, since 2004, my country has gradually established a coal-fired power generation benchmark on-grid tariff and coal-fired electricity price linkage mechanism; by 2019, the electricity price mechanism has undergone deepening reforms, and coal-fired on-grid electricity prices have entered "base price + upper and lower prices". "Floating" market-based price mechanism stage; now, the on-grid tariff mechanism for coal-fired power generation has ushered in further deepening reforms.

  The reform involves four core changes, including that all coal-fired power generation will enter the market in principle, promote all industrial and commercial users to enter the market, expand the range of fluctuations in market transaction electricity prices, and maintain the stability of residential and agricultural electricity prices.

  The 4-point measures continue to follow the overall requirements of my country's power system reform to "control the middle and liberalize the two ends".

In particular, significant progress has been made in "opening up the two ends", namely the power generation side and the power consumption side.

  On the power generation side, the reform will orderly liberalize the on-grid tariff for all coal-fired power generation. In other words, after the reform, all coal-fired power generation will enter the market, and the on-grid tariff will be formed within the range of "base price + fluctuations" through market transactions. .

It is reported that currently about 70% of coal-fired power generation in my country has entered the market.

  Wan Jinsong, Director of the Price Department of the National Development and Reform Commission, said that due to the high proportion of coal-fired power generation in my country, the price of coal-fired power generation has an "anchor" effect. This move will further drive other types of power generation power to enter the market and develop power-side grids for full release. Laying the foundation for electricity prices.

  On the power consumption side, the reform will promote all industrial and commercial users to enter the market and purchase electricity at market prices. The previously implemented industrial and commercial catalog sales price will be cancelled.

At that time, the catalog sales electricity price will only retain the residential and agricultural categories, and the residential and agricultural electricity prices and methods will remain unchanged.

It is understood that at present, about 44% of my country's industrial and commercial electricity consumption has entered the market.

  Adjustment of the fluctuation range of market transaction electricity price

  At the same time, the reform has also expanded the range of fluctuations in market transaction electricity prices, from the current rise of no more than 10%, no more than 15% in principle, and no more than 20% in principle.

Among them, the market transaction price of energy-intensive enterprises is not subject to a 20% increase.

  Peng Shaozong, deputy director of the Price Department of the National Development and Reform Commission, said that market transaction electricity prices will rise to a certain extent, and enterprise electricity costs will increase, but the overall situation is limited.

For small and micro enterprises and individual industrial and commercial households, local governments are encouraged to adopt phased subsidies to reduce the burden of electricity consumption of such enterprises.

At the same time, the reform proposes that the electricity price of high-energy-consuming enterprises is not subject to a 20% increase, which means that enterprises with high electricity consumption and high energy consumption will have to pay more, which also forces the transformation and upgrading of the industrial structure.

  The reporter noticed that the pricing standard of "the fluctuation range of market transaction electricity price does not exceed 10% and 15%, respectively" was determined in 2019.

The National Development and Reform Commission stated at the time that “the country’s electricity supply and demand are relatively loose, and the utilization hours of coal-fired generating units are lower than normal.”

  The world changes with time, and the current supply and demand situation of coal-fired power generation is very different from that of 2019.

Wan Jinsong said that the core of this further deepening of the reform is to truly establish a market-based electricity price mechanism that "can go down but up".

  The National Development and Reform Commission also stated that the reform will not affect the electricity consumption of residents. After the reform, the way residents and agriculture purchase electricity will remain unchanged, and the level of electricity prices will remain unchanged.

For enterprises, the cost of electricity consumption will increase, but the overall cost is limited.

It also has a limited impact on the overall price level.

  Interpretation 1

  Increasing corporate electricity costs, but overall limited

  The notice requires that the fluctuation range of coal-fired power generation market transaction prices is not more than 10% in the current float, 15% in principle, and not more than 20% in principle.

  It is worth noting that the reform proposes to promote all industrial and commercial users to enter the electricity market and purchase electricity at market prices. The previously implemented industrial and commercial catalog sales price will be cancelled.

This may raise the electricity cost of industrial and commercial users.

  At a press conference held on the same day, Peng Shaozong, deputy director of the Price Department of the National Development and Reform Commission, said frankly that the on-grid tariff for coal-fired power generation will be fully liberalized and the range of fluctuations will be expanded. Under the situation of tight power supply and demand, market transaction electricity prices may rise. To a certain extent, it will push up the cost of electricity for industrial and commercial enterprises.

However, different types of industrial and commercial users will have different situations.

  For high-energy-consuming enterprises, the reform stipulates that the market transaction price of such enterprises is not subject to a 20% increase in the price. The unlimited increase means that enterprises with high electricity consumption and high energy consumption will have to pay more.

  For other industrial and commercial users, the electricity consumption per unit of product production is low, and the electricity cost accounts for a relatively low proportion of the total cost. The market transaction electricity price will rise to a certain extent, and the enterprise electricity cost will increase, but the overall cost is limited.

At the same time, for small and micro enterprises and individual industrial and commercial households, the reform encourages local governments to adopt phased subsidies to reduce the burden on electricity consumption of such enterprises.

  At the press conference, Wan Jinsong, Director of the Price Department of the National Development and Reform Commission, also mentioned that the disorderly development of high-energy-consuming industries will increase the pressure on power supply and is not conducive to the development of green and low-carbon transformation.

This reform clarifies that the market transaction price of energy-intensive companies is not subject to a 20% increase, which is conducive to guiding the market transaction price of high-energy-consuming companies to rise more, thereby curbing unreasonable power consumption and improving power supply and demand; it is also conducive to Promote high-energy-consuming enterprises to increase investment in technological transformation, improve energy utilization efficiency, and promote the transformation and upgrading of industrial structure.

  Interpretation 2

  Give priority to low-cost power sources to ensure residential electricity consumption

  The notice requires maintaining stable electricity prices for residents and agriculture.

Residents (including schools, social welfare institutions, community service centers and other public welfare users that implement residential electricity prices), agricultural electricity supply is guaranteed by grid companies, and the current catalog sales electricity price policy is implemented.

All localities should give priority to using low-cost power sources to ensure electricity consumption for residents and agriculture.

  Wan Jinsong said that after the implementation of the reform, residents and agricultural users will purchase electricity and use electricity as before. The method has not changed, and the electricity price level will remain unchanged.

  Interpretation 3

  The electricity price reform has limited impact on price levels

  Peng Shaozong said that the reform emphasizes maintaining the stability of electricity prices for residents and agriculture, so it has no direct impact on the CPI (Consumer Price Index), but it will push up the electricity cost of enterprises, especially upstream production enterprises, to a certain extent. The price index) has a certain impact.

  However, the reform measures are conducive to improving power supply and demand, better guaranteeing the power demand of enterprises, promoting stable production of enterprises, increasing market supply, and generally conducive to price stability.

On the whole, the impact of this reform on price levels is limited.

  ■ Extension

  72 coal mines in Inner Mongolia will add nearly 100 million tons of new capacity

  The upstream of electricity is coal production and transportation.

In recent times, energy prices in the international market have risen sharply, and domestic coal demand has increased more than expected, which has boosted coal prices.

  The price of coal is high, and the market-priced coal price and the “semi-planned, semi-market” electricity price cannot yet form an effective channel. , Operating at a loss has severely inhibited the supply enthusiasm of coal power companies.

  Therefore, in addition to starting from the downstream demand side, adjusting electricity prices to adjust market demand, and straightening out the relationship between “coal power”, the executive meeting of the State Council also made arrangements for upstream supply, requiring coal mines with the potential to increase production to release production as soon as possible, and speed up the approved and The basically completed open-pit coal mine was put into production and reached full production.

The transportation department should give priority to guaranteeing coal transportation to ensure that the produced coal is transported to the place where it is needed in time.

  The reporter noted that major provinces such as Inner Mongolia, Shaanxi, and Shanxi have recently implemented policies to ensure coal supply.

  The "Emergency Notice of the Energy Administration of Inner Mongolia Autonomous Region on Accelerating the Release of Some Coal Mine Production Capacity" proposes that the production capacity of 72 coal mines will be nuclearly increased, and production can be temporarily organized according to the planned nuclear capacity increase from now on.

The list shows that 72 coal mines are mainly concentrated in Ordos City, and a total of 98.35 million tons of new production capacity is proposed, which is an increase of 55% on the basis of the original production capacity of 178.45 million tons per year.

  On October 10, Ordos City signed a coal supply guarantee contract for the fourth quarter with 18 provinces, autonomous regions, and municipalities including Heilongjiang, Jilin, Liaoning, and Tianjin, involving 53.64 million tons of guaranteed supply.

It is reported that since September, the city of Ordos has signed a total of 100 million tons of mid- and long-term coal contracts in the fourth quarter. As of now, Ordos has 229 coal mines under normal production, with an average daily output of more than 2.2 million tons.

  Both Shanxi and Inner Mongolia are big provinces with guaranteed coal supply. In 2020, Shanxi and Inner Mongolia will account for 53.7% of the country's total coal production.

On September 29, Shanxi signed a coal supply guarantee contract with 14 provinces, autonomous regions and municipalities, involving 55 million tons of guaranteed supply.

Yao Shaofeng, director of the Energy Bureau of Shanxi Province, said that companies undertaking the task of guaranteeing supply should implement the contract volume at a discount, break it down to the month, and reasonably arrange the delivery and unloading to ensure the performance rate.

  Since the heavy rains on October 2, some production coal mines in the six municipal areas of Taiyuan, Jinzhong, Changzhi, Jincheng, Linfen, and Yuncheng have been affected by the strong rainfall and have taken temporary emergency stop production and withdrawal measures on their own, but the suspension time is very long. Short, it will not have a significant impact on coal supply in Shanxi Province.

  Shaanxi is also a major coal supply guarantee province that has also suffered heavy rains. Up to now, Shaanxi officials have not released any news of coal mine shutdown.

According to the Shaanxi Provincial Development and Reform Commission, the province has organized key coal companies in the province to increase production, and compiled a breakdown of the 39 million tons of coal supply tasks in 14 provinces including Hunan and Hubei issued by the state.

  The cold winter is approaching, and the demand for energy use for people's livelihood is increasing. Many places, multiple departments and related enterprises have expressed their views to stick to the bottom line of energy use for people's livelihood and resolutely avoid the situation that restricts the energy use of residents.

  According to the person in charge of the National Development and Reform Commission, energy consumption for people’s livelihood accounts for a small proportion of the total supply, electricity consumption for residents accounts for less than 20% of the total electricity consumption, and gas consumption for people’s livelihood accounts for less than 50% of the total gas consumption. The conditions give full protection.

At the same time, resources will be tilted to the Northeast to ensure the stable operation of energy in the Northeast.

Keywords: power generation, notice, electricity prices, market, jiang huizi, national development and reform commission, tariff mechanism, users, range, market prices, price, power prices, electricity, coal, reform