Development and Reform Commission issued a document: improve the ladder electricity price policy of electrolytic aluminum industry

On August 27th, the National Development and Reform Commission issued the Circular on perfecting the ladder electricity Price Policy in the Electrolytic Aluminum Industry, which requires that the ladder electricity price policy should continue to be implemented in the electrolytic aluminum industry. The ladder electricity price is classified according to the comprehensive AC power consumption of liquid aluminum in electrolytic aluminum enterprises, the grading standard is 13650 kilowatt hours per ton in 2022, and from 2023, the grading standard will be adjusted to 13450 kilowatt hours per ton (excluding desulphurization power consumption). Since 2025, the grading standard has been adjusted to 13300 kilowatt hours per ton (excluding desulphurization power consumption). For electrolytic aluminum enterprises whose comprehensive AC power consumption of liquid aluminum is not higher than the grading standard, the electricity consumption of liquid aluminum production shall not be increased; if it is higher than the grading standard, the electricity consumption of liquid aluminum production will be increased by 0.01 yuan per kilowatt hour for every 20 kilowatt hours, and if it is less than 20 kilowatt hours, it will be calculated as 20 kilowatt hours.

The following is the original text:

Circular of the National Development and Reform Commission on perfecting the ladder electricity Price Policy of Electrolytic Aluminum Industry

Development and Reform Price (2021) No. 1239

Development and Reform Commission of all provinces, autonomous regions, municipalities directly under the Central Government, Xinjiang production and Construction Corps, Department of Industry and Information Technology of Jiangsu, Fujian and Qinghai provinces, Energy Bureau of Shanxi, Zhejiang and Guangdong Province, National Electroweb Company, Southern Electroweb Company, Inner Mongolia Electric Power (Group) Co., Ltd.:

In order to implement the decision-making and deployment of the CPC Central Committee and the State Council, constantly improve the green price mechanism, give full play to the leverage of electricity price, and promote the electrolytic aluminum industry to continuously improve energy efficiency and reduce carbon emission intensity, to serve the economic and social development of green and low-carbon cycle, the matters related to improving the ladder electricity price policy of the electrolytic aluminum industry are hereby notified as follows:

I. improve the grading and price increase standards of tiered electricity prices.

(1) step-by-step electricity prices shall be set by stages. The step price of electrolytic aluminum industry is classified according to the comprehensive AC power consumption of liquid aluminum, and the grading standard is 13650 kilowatt hours per ton. If the comprehensive AC power consumption of liquid aluminum in an electrolytic aluminum enterprise is not higher than the grading standard, the electricity consumption of liquid aluminum production shall not be increased; if it is higher than the grading standard, the electricity consumption of liquid aluminum production will be increased by 0.01 yuan per kilowatt hour for every 20 kilowatt hours, and if it is less than 20 kilowatt hours, it shall be calculated as 20 kilowatt hours.

(2) steadily adjust the grading standards. Since 2023, the grading standard has been adjusted to 13450 kWh per ton of liquid aluminum comprehensive AC power consumption (excluding desulphurization power consumption), and since 2025, the grading standard has been adjusted to 13300 kilowatt hours per ton of liquid aluminum (excluding desulfurization power consumption).

(3) dynamically adjust the price increase standard based on the level of clean energy utilization. Electrolytic aluminum enterprises are encouraged to improve the utilization level of non-water renewable energy such as wind power and photovoltaic power generation, and reduce fossil energy consumption. If the proportion of non-water renewable energy consumed by electrolytic aluminum enterprises is more than 15% of the total electricity consumption, and is not less than the incentive value of the responsibility weight of non-hydropower consumption in the province (autonomous region or municipality directly under the Central Government) last year, for every 1% increase in the proportion, the price increase standard of ladder electricity price will be correspondingly reduced by 1%.

II. It is strictly forbidden to implement preferential electricity price policy for electrolytic aluminum industry.

(1) it is strictly forbidden to introduce preferential electricity price policies. All localities should strictly implement the national electricity price policy, strictly prohibit the implementation of preferential electricity prices for the electrolytic aluminum industry, and organize special transactions in the electricity market of electrolytic aluminum enterprises, and those that have been implemented and organized should be cancelled immediately. The introduction of preferential electricity price policy is strictly prohibited to be included in the evaluation and assessment of the double control target responsibility of the provincial people's government on energy consumption.

(2) standardize the trading behavior in the electricity market. Electrolytic aluminum enterprises that fail to pay the electricity charges as scheduled or whose energy-saving targets have not been completed shall not participate in the transaction in the electricity market and implement the guaranteed floor price for all electricity consumption.

(3) strengthen the management of self-provided power plants. All localities should, in strict accordance with the relevant state regulations, charge corresponding government funds and additional, system reserve fees and policy cross-subsidies for self-generated electricity consumption of power plants provided by electrolytic aluminum enterprises, and strictly implement the ladder electricity price policy, and shall not waive it on their own.

III. Strengthen the collection of tariff increases

(1) to carry out special energy conservation supervision. In the first quarter of each year, the provincial department in charge of energy conservation shall, in conjunction with the local reality, organize special energy-saving supervision over all local electrolytic aluminum enterprises, and form the results of energy-saving supervision by the end of March, including the comprehensive AC power consumption and power consumption of liquid aluminum production of all local electrolytic aluminum enterprises last year and before and after the energy-saving technological transformation (if any), and the results of energy-saving supervision should be transferred to the provincial development and reform departments at the same time.

(2) standardize the mode of collection of tariff increase. Electroweb enterprises shall submit the completion of electricity consumption of non-water renewable energy last year to the development and reform departments at the provincial level before the end of March each year. The development and reform departments at the provincial level shall, on the basis of the results of energy conservation supervision and the completion of electricity consumption of non-water renewable energy, determine the tiered electricity price grades, price increase standards and total electricity charges that should be implemented by all local electrolytic aluminum enterprises in the previous year before April 15 of each year, and announce to the public the list of enterprises and the tiered electricity price classification and price increase standards that should be implemented, which shall be subject to social supervision. For the electrolytic aluminum enterprises that carried out energy-saving technical transformation last year, the electricity consumption of liquid aluminum production will not be increased after the transformation reaches the standard. If there is a merger or division of an electrolytic aluminum enterprise, the enterprise that uses its existing electrolytic aluminum production line shall bear the responsibility of paying the electricity charge. Electroweb enterprises shall collect the tariff in full and in time according to the list of electrolytic aluminum enterprises and the total tariff determined by the development and reform department at the provincial level.

(3) to strengthen the collection of tariff increases. Electrolytic aluminum enterprises that should implement step-by-step price increase shall pay the price increase in full and in time. For the electrolytic aluminum enterprise that still fails to pay 90 days after receiving the Electroweb enterprise price increase notice, the electrolytic aluminum enterprise shall pay the price increase electricity charge according to 1.5 times of the original price increase standard, and the points shall be deducted during the evaluation and assessment of the enterprise's energy saving target responsibility. and carry out combined punishment for breach of trust on enterprises in accordance with the law. For electrolytic aluminum enterprises with their own power plants, all localities should earnestly strengthen the collection of electricity charges to ensure the fair and impartial implementation of the policy.

IV. Improve the management and use system of electricity tariff funds for price increase

Electroweb enterprises should keep separate accounts and reflect the increase in electricity charges formed by the implementation of the step-by-step electricity price policy in the electrolytic aluminum industry. Of these, 10% of Electroweb enterprises are retained as income beyond the allowable income for power transmission and distribution, and 90% are managed and used by development and reform departments at the provincial level in accordance with relevant national policies. it is specially used to support energy-saving transformation and upgrading of high-energy-consuming industries, as well as the construction of new power systems.

V. strengthening the supervision and inspection of the implementation of tiered electricity prices

All provincial development and reform departments should actively work with and cooperate with relevant departments to strengthen the supervision and inspection of the implementation of the ladder electricity price policy in the electrolytic aluminum industry, and urge electrolytic aluminum enterprises and Electroweb enterprises to strictly implement the ladder electricity price policy. The National Development and Reform Commission will organize forces to check and spot check the implementation of various localities from time to time, and conduct cross-checks if necessary.

This circular shall enter into force as of January 1, 2022. Other differential electricity price policies currently implemented for the electrolytic aluminum industry and inconsistent with this Circular shall be suspended accordingly.

National Development and Reform Commission

August 26, 2021

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Relevant responsible comrades of the National Development and Reform Commission answered questions on the Circular on perfecting the ladder electricity Price Policy in the Electrolytic Aluminum Industry