To the Development and Reform Commissions and Price Bureaus of all provinces, autonomous regions, and municipalities directly under the Central Government, State Grid Corporation of China, China Southern Power Grid Corporation, and Inner Mongolia Electric Power Company:
In order to implement the Several Opinions of the CPC Central Committee and the State Council on Further Deepening the Reform of the Electricity System (Zhongfa [2015] No. 9), establish a scientific and reasonable mechanism for the formation of transmission and distribution prices, and decide to accelerate the reform of transmission and distribution prices, the following notice is hereby issued on the relevant matters:
1. Expanding the scope of the pilot reform of transmission and distribution prices
On the basis of Shenzhen and western Inner Mongolia taking the lead in carrying out the pilot reform of transmission and distribution prices, Anhui, Hubei, Ningxia, and Yunnan provinces (regions) will be included in the scope of the pilot reform of transmission and distribution prices in advance, and the transmission and distribution prices will be separately determined according to the principle of "allowable cost plus reasonable profit". Other regions with conditions are encouraged to carry out the pilot reform of transmission and distribution prices. The price authorities of the pilot provinces (regions) are requested to refer to the experience of the pilot reform of transmission and distribution prices in Shenzhen, and formulate the pilot reform plan of the power grid transmission and distribution prices in their provinces (regions) in combination with local conditions, and submit it to our Commission before the end of July 2015.
2. Comprehensively carry out the survey and calculation of transmission and distribution prices
Areas outside the above-mentioned pilot scope should simultaneously carry out the survey and calculation of transmission and distribution prices. The price authorities of non-pilot provinces (autonomous regions and municipalities) are requested to carefully prepare for the reform of transmission and distribution prices, conduct a comprehensive investigation and find out the assets, costs and corporate benefits of power grid transmission and distribution, and deeply analyze the main contradictions and problems in the management of transmission and distribution prices. On this basis, preliminarily calculate the transmission and distribution price levels of each voltage level of the power grid in the province (autonomous region and municipality), study and propose work ideas for promoting the reform of transmission and distribution prices, and submit the calculation results and reform ideas in writing to our commission before the end of October 2015.
3. Reform the supervision model of power grid enterprises
By accelerating the reform of transmission and distribution prices, the supervision of power grid enterprises will be changed from the current indirect supervision of the current approved prices of power purchase and sales, and the power grid enterprises will obtain the price difference income, to the all-round direct supervision of power transmission and distribution income, costs and prices based on power grid assets. Power grid enterprises will collect network access fees according to the transmission and distribution prices approved by the government, and will no longer use the price difference between the on-grid electricity price and the sales price as the main source of income. In the process of determining the transmission and distribution price, it is necessary to meet the normal and reasonable investment needs of the power grid and ensure the stable income source and profit level of power grid enterprises, and strengthen cost constraints, strictly monitor the transmission and distribution costs, promote enterprises to strengthen management and improve efficiency. This year, our commission will issue the cost monitoring method for transmission and distribution pricing, and on the basis of carefully summarizing the experience of the reform pilot, study and improve the transmission and distribution price management method as soon as possible, and establish and improve the cost constraint and income supervision mechanism for power grid enterprises.
4. Actively and steadily promote the marketization of electricity prices
In conjunction with the reform of the power system, separate the transmission and distribution price from the sales price in the formation mechanism, actively and steadily promote the marketization of electricity prices on the power generation side and the sales side, and gradually realize the sales price of electricity other than public welfare by the market. Encourage power users or power sales entities and power generation enterprises to independently determine the market transaction price through voluntary negotiation, market bidding and other means, and pay the transmission and distribution price according to the voltage level of their access to the power grid.
5. Strengthen organization and implementation
Promoting the reform of transmission and distribution prices is a clear requirement and a key task in the near future proposed by Document No. 9 of the Central Development and Reform Commission [2015]. The pricing authorities of all regions should attach great importance to this, make careful arrangements, strengthen cooperation with relevant departments, organize capable personnel to make solid progress, and ensure that the work is completed on schedule. State Grid Corporation of China, China Southern Power Grid Corporation, and Inner Mongolia Electric Power Company should cooperate in the pilot reform of transmission and distribution prices and the investigation and calculation work, and objectively and truthfully provide relevant information and supporting materials such as grid costs, investment, and electricity consumption to ensure the smooth progress of related work.