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NDRC: SIGNIFICANCE PROGRESS HAS BEEN MADE IN "ALLOWING FOR MORE COMPETITION IN ELECTRICITY GENERATION, SALES AND CONSUMPTION" AND ESTABLISHING A MARKET-BASED ELECTRICITY PRICE MECHANISM

Source:http://en.cnesa.org/

On October 12, the National Development and Reform Commission issued the "Notice on Further Deepening the Market-oriented Reform of Coal-fired Power Generation On-grid Electricity Prices". China will keep stable residential and agricultural electricity prices while orderly liberalizing the on-grid electricity prices for all coal-fired power generation. Expand the range of fluctuations in market transaction electricity prices, and encourage industrial and commercial users to enter the market. This reform has made important progress in "liberating the two ends", namely, the development of power-side on-grid tariffs and user-side sales tariffs, marking another important step in the reform of the electricity market.

The core of the reform is to truly establish a market-based electricity price mechanism that "can fall and rise flexibly". From the current point of view, the reform is conducive to further straightening out the relationship between "coal power" and ensuring the safe and stable supply of electricity; in the long run, it will accelerate the development of medium and long-term power transactions, the spot market and the auxiliary service market, and promote the high-quality development of the power industry. Supporting the construction of a new power system, serving the green and low-carbon transformation of energy, and will play an important role in accelerating the reform of power generation and consumption plans and the reform of the power sales side system.