In the past year, the user’s electricity bill was reduced by more than 70 billion yuan; the market’s trading power was 1.2 trillion kWh, an increase of 49.6% year-on-year, accounting for 31.2% of the electricity sold; the incremental power distribution reform pilot was fully rolled out, and the mixed ownership system started operations. This is a report card of the power system reform in 2017 announced by the State Grid Corporation of China. The year 2018 is a crucial year for the advancement of electricity reform. The reform dividend is expected to be further released.
According to the “Economic Information Daily” reporters, the third batch of pilot projects for incremental power distribution reforms are being organized and applied in recent days. According to the requirements, full coverage of cities above prefecture level will be achieved this year. At the same time, the verification of transmission prices for inter-provincial grids has also started.
Wang Yanfang, a full-time spokesperson for the State Grid Corporation of China, disclosed that in 2018, the transmission and distribution price reform will achieve full coverage of the company’s various levels of power grid assets, and at the same time, it will deepen the national unified power market construction in accordance with the “unified market and two-tier operation” model. Establish a standardized provincial-level medium and long-term trading mechanism, cooperate well with the spot market construction pilot to achieve effective linkage with inter-provincial and medium- and long-term transactions, and effectively eliminate provincial barriers. In addition, implement a clean energy quota system and explore market-based mechanisms for promoting clean energy consumption.
2017 is an important year for the implementation of the power system reform policy. As the largest power grid company in China, within the business scope of State Grid Corporation, all transmission and distribution tariffs of provincial power grids other than Tibet have been approved, and a scientific provincial power grid transmission and distribution price formation mechanism has been initially established.
“The transmission and distribution price reforms have achieved initial results and effectively released the reform dividend.” Wang Yanfang said that through the measures of transmission and distribution price reform, the elimination of urban public utilities surcharges, and the reimbursement of electricity tariffs for electric iron, the State Grid Corporation has reduced users in 2017 The electricity expenditure exceeds 70 billion yuan, effectively reducing the cost of energy for the real economy.
On this basis, the marketization of power trading has also progressed. It is understood that in 2017, within the scope of the State Grid's operation, 27 provincial-level power trading centers have all achieved relatively independent corporate operation, and the two-tier trading platform has been regularly opened to market, coordinated operations, and the varieties of transactions have continued to innovate. It initiated the establishment of a coalition of national electricity trading organizations to set up an important platform for exchanges, cooperation, and information sharing among the national trading organizations. 18 provinces completed the establishment of the market management committee or approved the plan.
Another major highlight of the electricity reform is the incremental electricity distribution reform. According to the “Economic Information Daily” reporter, as of now, the National Development and Reform Commission and the National Energy Administration have approved two batches of 194 incremental power distribution reform pilots.
Huang Liming, director of the second division of the State Grid Corporation of Economic Restructuring, said that the company has approved 150 pilot projects and has covered 109 cities. Up to now, among the first batch of pilot projects, the company has signed 37 cooperation agreements with related parties and introduced 36 private capitals.
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