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Ren Haoning, a researcher in the energy industry at China Investment Advisors Co., Ltd., said that the debate over the reform of the electricity price adjustment mechanism has been long overdue, and the focus is on who will handle the tariff adjustment. At present, the government's administrative intervention in the electricity market is strong. The price of electricity is stipulated by the National Development and Reform Commission. Other stakeholders, including power generation companies, power grid companies and consumers, are difficult to participate in the formation of electricity prices. This pricing mechanism is obviously not a long-term solution.
Is it reasonable to say who controls the price adjustment? First, the power generation companies have the final say. Obviously, subject to the monopoly of grid companies, it is impossible for power generation companies to achieve their own pricing. Moreover, it is entirely priced by the power generation companies, and ignoring the consumption situation will inevitably lead to high electricity prices. Second, the power grid companies have the final say. The problem that this leads to is that the on-grid electricity price is low, and the sales price is high. Ultimately, the power generation companies and consumers have to pay for grid companies. Obviously, this is unreasonable. Third, the consumer has the final say. Respect for the will of consumers is certainly correct, but it is entirely up to the consumer to say that the price of electricity will inevitably be too low, and it will be difficult for power generation companies to survive.
Zhang Yanlin, research director of China Investment Consulting Co., Ltd. pointed out that the price of electricity should be decided by the power generation companies, power grid companies and consumers, and the government should play a coordinating role. As a commodity, the price of electricity should also be determined by the supply and demand sides of the market. The government need not interfere too much. Of course, since China has not yet formed a competitive electricity market, the release of tariff regulation will inevitably lead to many problems. However, the government should clarify the direction and thinking of the power reform and gradually return it to the market.
The "Investment Analysis and Forecast Report of China's Power Industry for the Period 2011-2015" published by the China Investment Advisor shows that the "Power System Reform Plan" issued by the State Council in 2002 has identified "separation of plant and network, separation of main and auxiliary facilities, separation of transmission and distribution, and bidding for access to the Internet." "The four major reform tasks, but the nine-year reform program has been postponed and delayed several times. With the gradual tightening of the domestic power supply and demand situation, the government needs to speed up the process of power reform.
Electricity price adjustment mechanism
On November 30, the National Development and Reform Commission announced that it will increase the sales price and the on-grid tariff. The sales price will increase by an average of 3 cents per kilowatt-hour, and the on-grid tariff will increase by an average of 2.5 cents nationwide. It also said that the increase will not involve residential electricity prices for the time being. At the same time, it also introduced the national guideline for the residents' ladder price, dividing the residents' monthly electricity usage into three levels and increasing the free file for low-income families.