SMM6, 25 July: recently, the Inner Mongolia Development and Reform Commission issued the Circular on matters related to the reduction of electricity Price for General Industry and Commerce in Mengxi region. Starting from July 1, it decided to implement the second batch of measures to reduce the electricity price for general industry and commerce in Mengxi region. The Circular mentioned:

1. In accordance with the unified deployment of the state, the price reduction space formed by measures such as a 50% reduction in the collection standard of major water conservancy project construction funds (except for market-oriented trading electricity) and a 0.5 percentage point reduction in the average depreciation rate of fixed assets of power grid enterprises are all used to reduce the electricity prices of general industry and commerce.

2. Since July 1, 2019, the electricity price for general industrial and commercial power consumption in the western Inner Mongolia power grid has been reduced by an average of 4.86 cents per kilowatt-hour. The transmission and distribution prices involving general industrial and commercial power consumption categories have been reduced accordingly.

3. Through the implementation of two batches of price reduction measures, from July 1, 2019, the general industrial and commercial and other power consumption and large industrial power consumption of the western Inner Mongolia power grid can be merged into industry and commerce and other power consumption categories, and the implementation methods are single system and two-part system. Among them, the users who belong to the large industrial power consumption implement the two-part electricity price; Belong to the general industry and commerce and other users of electricity, the capacity of the transformer (including the capacity of high-voltage motors not connected through the transformer) at 315 KVA (kilowatts) or above, according to their own electricity characteristics, voluntarily choose to implement a single system or two-part electricity price (the change period is at least one year), the rest of the general industrial and commercial and other electricity users still implement a single system electricity price.

4. The general industrial and commercial and other users of electricity with a voltage level of 110 kV or above in the single system electricity price shall be implemented in accordance with the electricity price standard corresponding to the voltage level of 35 KV and 110 kV.

5. After the merger of the categories of industrial and commercial power consumption, the general industry and commerce and other users of the single or two-part electricity price shall implement the corresponding transmission and distribution price when they participate in the multilateral power transaction, and shall not carry out the inverted ladder transmission and distribution price.

6. The development and reform commissions and power grid enterprises at all levels in Mengxi region shall, in accordance with the provisions of this Circular, carefully organize and make careful arrangements, do a good job in propaganda and interpretation, take the initiative to serve enterprises, and ensure the smooth implementation of the new electricity price policy. The relevant commercial complexes, industrial parks, office buildings, properties and other transfer power supply subjects should transmit the equal amount of the two batches of price reduction policy dividends in Mengxi region this year to the end users, and shall not be intercepted for any reason. If you encounter any situations and problems in the course of implementation, please report to our Commission (Price Office) in a timely manner.

According to SMM, "electricity prices for general industry and commerce have been reduced by an average of 10 per cent," Prime Minister Li Keqiang stressed in his 2018 government work report, which brings great good news to general business. This requirement has been implemented all over the country, so that the power market reform is conducive to enterprises to improve efficiency and reduce costs. According to data released by the National Energy Administration, in 2017, China's market-oriented trading power consumption of 1.6 trillion kilowatt hours, accounting for about 25% of the electricity consumption of the whole society, reducing the cost of electricity consumption for the real economy by about 70 billion yuan. Based on this, it is estimated that the electricity cost of users participating in market transactions will fall by an average of 4.4 cents per kilowatt hour in 2017. With the gradual deepening of power system reform and the further release of reform dividends, there is still room for power enterprises to further improve quality and efficiency.

At the same time, last week, Inner Mongolia market news, due to inadequate operation of the power grid system, some areas of Inner Mongolia power limit of 1 million load. This week, the wind power forecast capacity of about 2.4 million, if the North China Power Grid can not provide power assistance, by then the whole network will be missing about 1.2 million, Baotou, Xuejiawan, Xilingol, Bayannur, Alxa, Wulanchabu need to be prepared to use electricity in an orderly manner. The overall output of the Inner Mongolia alloy industry may have a slight impact, this news on the Si-mn alloy market to form a good support.

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