Author: Source: the Internet Published time: May 11, 2015
On May 8, the National Development and Reform Commission issued the notice On Relevant Issues with Perfecting Mechanism of Cross-Province Electric Power Pricing. This is the fourth supportive document after the issuance of the first document on new electric power reform.
Below are the contents of the notice:
To: Development and Reform Commissions, Administration of Commodity Prices, and Power Companies of the Provinces, Autonomous Regions, and municipalities; branches of the National Energy Administration; State Grid; China Southern Power Grid; Inner Mongolia Power (Group) Co., Ltd.; China Huaneng; China Datang; China Guodian; State Power Investment Corporation; China Three Gorges Corporation; State Development & Investment Corp.
After consulting with the National Energy Administration, we hereby issue the following notice on relevant issues in order to implement the key message of the Opinions of the State Council and CPC Central Committee about Deepening Electric Power Industry Reform (ZF Doc. No. 9 (2015)), perfect the mechanism of electric power pricing, boost cross-province market-based power trading, and promote the optimized allocation of power resources in a large scope:
1. In the case of cross-province power transmission, the transmitting side and receiving side shall, on a voluntary and equal basis, determine the volume and price of electric power transmitted and received through negotiations by the principle “risk and benefit sharing” or through market-based trading on the condition that the national energy strategy is implemented, and then build a corresponding price-adjustment mechanism.
2. The state encourages the determination of the power transmission project owner and price through competitive means such as bidding; it encourages the transmitting and receiving sides to establish a long-term and stable mechanism for electric power trading and price adjustment, which shall be provided for in a long-term or intermediate-term contract.
3. As for the power transmission price for cross-province or cross-region electric power trading as fixed by the state, the transmitting and receiving sides may renegotiate and adopt the negotiated price, with the negotiation result reported to the National Development and Reform Commission and the National Energy Administration.
4. If both sides fail to reach an agreement after negotiations, they may request the National Development and Reform Commission and the National Energy Administration to coordinate for them.
5. The National Development and Reform Commission and the National Energy Administration shall organize cost supervision over cross-province or cross-region power transmission projects and again ratify the power transmission price (inclusive of line loss; the same in the following) according to the results of such supervision. When the transmission price is adjusted, the adjusted part shall be, based on the principle “risk and benefit sharing”, be split 1:1 between the transmitting and receiving sides.
6. The above electric power tariff policy comes into effect as of April 20, 2015.
7. The provisions in this notice shall prevail in the case of any difference with the existing methods/provisions.
Attachments:
Part of Results of Cross-province/Cross-region Power Transmission Price Negotiations
The parties have, by the principle “risk and benefit sharing” and according to changes in market demand and supply, negotiated and reached an agreement over the cross-province/cross-region power transmission price concerning Xiangjiaba, Xiluodu, and Yalong River Cascade Hydropower Stations:
1. The final price for power transmission from Xiangjiaba, Xiludu, First Cascade in Jinping Sichuan, Second Cascade in Jinping Sichuan, Guandi Cascade Hydropower Stations to Shanghai, Jiangsu, Zhejiang, and Guangdong are adjusted downward by reducing the benchmark coal power on-grid power tariff as of April 20, 2015. That is, the final price for power transmission from Xiangjiaba and Xiluodu Hydropower Stations to Shanghai is RBM 0.4386/kWh, that to Zhejiang is RMB0.4513/kWh, and that to Guangdong is RMB0.4695/kWh; that from Jinping First Cascade, Jinping Second Cascade, and Guandi Casecade Hydropower Stations under Yalong River Hydropower Development Co., Ltd. to Jiangsu is RMB0.4236/kWh.
2. The on-grid power tariff is calculated on the basis of the above-mentioned final price minus the power transmission price and line loss. The on-grid power tariff for power transmission from Xiangjiaba and Xiluodu Hydropower Stations to Shanghai is RBM0.3149/kWh, that to Zhejiang is RMB0.3391/kWh, and that to Guangdong is RMB0.3565/kWh; that from Jinping First Cascade, Jinping Second Cascade, and Guandi Casecade Hydropower Stations under Yalong River Hydropower Development Co., Ltd. to Jiangsu is RMB0.2987/kWh.
3. The on-grid power tariff at the feed-in sides of the generator unit of Xiangjiaba and that on the left bank of Xiluodu is RMB0.3218/kWh for settlement; that at the feed-in side of the generator unit on the right bank of Xiluodu is RMB0.3421 for settlement; and that for the feed-in sides of Jinping First Cascade, Jinping Second Cascade, and Guandi Cascade Hydropower Stations is RMB0.3084/kWh for settlement.
4. From now on, the final price for power transmission from Xiangjiba, Xiluodu, Jinping First Cascade, Jinping Second Cascade, and Guandi Hydropower Stations to Shanghai, Jiangsu, Zhejiang, and Guangdong shall be synchronously adjusted upward or downward according to the coal-fired power tariff in the receiving province (exclusive of the adjustment by the green power tariff).
5. The above price/tariff and the price adjustment mechanism come into effect as of April 20, 2015.