Circular of the National Development and Reform Commission on further deepening the market-oriented reform of on-grid electricity price for coal-fired power generation

The NDRC issued a notice saying that in order to implement the decisions and arrangements of the CPC Central Committee and the State Council, speed up the market-oriented reform of electricity prices, improve the mechanism that electricity prices are mainly determined by the market, and ensure the safe and stable supply of electricity, the notice on further deepening the market-oriented reform of on-grid electricity prices for coal-fired power generation and related matters is as follows:

I. General thinking

In accordance with the overall requirement of "controlling the middle and opening up both ends" in the reform of the electric power system, we should liberalize the online electricity price of all coal-fired power generation in an orderly manner, expand the fluctuation range of market transaction electricity price, and promote industrial and commercial users to enter the market. We should abolish the electricity prices sold in industrial and commercial catalogues, keep the electricity prices of residents, agriculture and public welfare utilities stable, give full play to the decisive role of the market in the allocation of resources, and give better play to the role of the government. We will ensure safe and stable power supply, promote the optimization and upgrading of the industrial structure, promote the construction of a new power system, and help achieve the goal of carbon peak and carbon neutralization.

II. Content of reform

(1) to liberalize the on-grid electricity price of all coal-fired power generation in an orderly manner. In principle, all the electricity generated by coal-fired power generation enters the electricity market, and the feed-in electricity price is formed within the range of "benchmark price + fluctuation" through market transactions. The current benchmark price for coal-fired power generation continues to be used as a benchmark for the formation of prices such as new energy power generation.

(2) to expand the fluctuation range of market transaction electricity price. The floating range of the trading price of the coal-fired power generation market will be expanded from the current floating range of no more than 10% and no more than 15% in principle to no more than 20% in principle, and the market price of high energy-consuming enterprises will not be subject to the limit of 20%. The spot price of electricity is not subject to the above limits.

(3) to promote the entry of industrial and commercial users into the market. All localities should promote all industrial and commercial users to enter the electricity market in an orderly manner, purchase electricity according to market prices, and abolish the electricity prices sold in industrial and commercial catalogs. At present, for users who have not yet entered the market, users of 10 kV and above should all enter, and other users should enter as soon as possible. For users who have not purchased electricity directly from the electricity market for the time being, Electroweb enterprises will act as agents to purchase electricity, and the agency purchase price is mainly formed through centralized bidding on the market or competitive bidding. When electricity is sold to the agent user for the first time, the user shall be notified at least one month in advance. For users who have participated in market transactions and changed to Electroweb enterprises to act as agents to purchase electricity, the price shall be 1.5 times that of Electroweb enterprises acting as agents for other users.

Local governments are encouraged to implement phased preferential policies for the use of electricity by small and micro enterprises and individual industrial and commercial households.

(4) to keep the price of electricity used by residents and agriculture stable. Residents (including users of public welfare undertakings such as schools, social welfare institutions and community service centers that implement resident electricity prices) and agricultural electricity are guaranteed by Electroweb enterprises, and the current catalogue selling electricity price policy is implemented. All localities should give priority to the use of low-cost power to ensure the use of electricity for residents and agriculture.

III. Safeguard measures

(1) to promote the construction of the electricity market in an all-round way. Strengthen policy coordination to meet the needs of all industrial and commercial users to enter the power market, further liberalize all kinds of power generation plans, improve the power market system, speed up the cultivation of qualified electricity sellers, and enrich medium-and long-term trading varieties. we will speed up the construction of the spot market for electricity, strengthen the construction of the auxiliary service market, and explore the establishment of a market-oriented capacity compensation mechanism.

(2) to strengthen convergence with the time-of-use electricity price policy. All localities should speed up the implementation of the time-sharing electricity price policy, establish a peak electricity price mechanism, and guide users to use electricity off peak, cut peak and fill valley. Where the spot electricity market is not in operation, it is necessary to make a good connection between the market transaction and the time-sharing electricity price policy. if the power consumption curve of the market transaction contract and the peak-valley ratio of the market electricity price are lower than the requirements of the local time-sharing electricity price policy, at the time of settlement, the purchase price shall be carried out according to the peak-valley period and floating ratio of the local time-of-use electricity price.

(3) to avoid unreasonable administrative intervention. All localities should, in strict accordance with the requirements of relevant state policies, promote the construction of the power market, formulate and constantly improve market trading rules, set no unreasonable threshold for power users and power generation enterprises to enter the electricity market, and shall not organize and carry out special electric power transactions. the reasonable fluctuation of the market transaction price within the prescribed range shall not be interfered with to ensure that the market transaction is fair, just and open. The National Development and Reform Commission, together with relevant departments, will further strengthen guidance and supervise rectification and reform in a timely manner through interviews and bulletins on unreasonable local administrative intervention.

(4) strengthen the supervision of the coal and electricity market. The development and reform departments of various localities should pay close attention to the dynamics and price changes of the coal and electricity markets, and actively work with relevant departments to timely investigate and deal with acts such as price collusion among market players, bid-up prices, implementation of monopoly agreements, abuse of market dominant position, etc., electric power enterprises and trading institutions participate in electric power special transactions and settlement of electricity charges, as well as local governments abuse administrative power to exclude and restrict market competition. Public exposure of typical cases to maintain good market order. Guide power generation enterprises, especially coal and power joint ventures, to consider the business benefits of upstream and downstream as a whole, reasonably participate in electricity market quotations, and promote the reasonable formation of market transaction prices.

The development and reform departments of various localities should fully understand the important significance of further deepening the market-oriented reform of electricity prices for coal-fired power generation under the current situation, unify their thinking, clarify their responsibilities, and meticulously organize and implement them in conjunction with relevant departments and power enterprises. it is necessary to strengthen the propaganda and interpretation of policies, respond to social concerns in a timely manner, enhance understanding and support from all parties, and ensure that the reform is introduced smoothly and takes effect.