The power grid buying and selling power functions will be stripped

The power reform that has been stagnating for a decade has finally ushered in a substantial "restart."

On November 4, the National Development and Reform Commission stated that in order to explore the establishment of an independent transmission and distribution price formation mechanism and promote the reform of the electricity market, the “Notice on the Implementation of Pilot Projects for Transmission and Distribution Tariff Reform in Shenzhen” (hereinafter referred to as the “Notice”) was formulated. The document made it clear that Shenzhen will establish an independent transmission and distribution tariff system, improve the transmission and distribution price supervision system and supervision methods, and accumulate experience in transmission and distribution pricing reforms in other regions. The new electricity price mechanism will run from January 1, 2015, and the original electricity price system will stop. It is worth noting that in the "Notice", it was determined that pilots would peel off the power-supply and selling functions of the grid and instead focus on the functions of transmission and distribution. At the same time, it has clarified the total revenue supervision and tariff regulation for the transmission and distribution prices of power grid companies. "Shenzhen belongs to China Southern Power Grid, and it is all urban electricity."

Lin Boqiang, director of the China Energy Economics Research Center at Xiamen University, told reporters that China Southern Power Grid has a smaller body size compared to the State Grid, and it has less resistance to operation. After the completion of Shenzhen's independent transmission and distribution tariff system, it will actively promote the marketization of power generation-side and sales-side electricity prices, encourage competitive prices, break the grid monopoly power sales pattern, and eliminate cross-subsidies.

At this point, the thinking of the new round of electric reform has been basically clear.