New Electricity Reform Expected to Expand in Electricity Surplus Area

The electric power reform will be carried out in the same way as the expansion of the pilot side, and an area with a plurality of power grid transmission and distribution terminals and excess power supply capacity will be the first pilot area to carry out a new round of electric power reform. The trillion-billion-dollar market for the country’s 5.5 trillion yuan in electricity sales is about to start.

Energy reform will culminate this year.

From April 1, China's natural gas prices formally merged, which means that natural gas price reforms have completed the "ice-breaking journey." With the natural gas reform kicked off, electrical reform is also expected to relay.

It is reported that the new power reform plan has been submitted to the State Council executive meeting before the Spring Festival. The meeting of the Politburo Standing Committee will be reviewed and approved, and will be issued before and after the first half of this year. A new round of power system reform will be launched.

Analysts said that the contents of the “four liberalization, one independence, and one strengthening” framework for the new power reform program have been basically determined, and follow-up details need to be further agreed. With the introduction of the new electricity reform plan, the trillion-billion-dollar market corresponding to RMB 5.5 trillion in electricity sales will soon be opened.

In addition, the new round of electric reform will be carried out in the same way as the expansion of the pilot side, and the surplus electricity area is expected to become a new pilot. With the opening of the power sales market, power generation companies such as the five major power groups and private capital groups with financial strength are expected to enter the first.

The new electricity reform plan will be introduced or will open trillions of yuan market

During the two sessions, energy reform became one of the key words.

It is worth noting that, on the eve of the two sessions, natural gas prices formally merged, natural gas reform kicked off, and the time and intensity of reform exceeded the industry's expectations.

In addition to natural gas reform, electricity reform and oil reform are also accelerating.

At present, the “Several Opinions on Deepening the Reform of the Electric Power System” has been deliberated through the State Council Executive Meeting and the Standing Committee of the Central Political Bureau. The core idea of ​​the reform is to liberalize the prices of competitive products and strengthen market supervision.

People in the industry believe that liberalizing price control is the precondition for realizing the reform of the electric power system. Realizing the market-based electricity pricing mechanism and the electric power industry's operating mode are also the goals of the electric power system reform. The release of tariff regulation is conducive to the increase of on-grid tariffs for hydropower companies and the gradual realization of homogeneous prices.

A number of sources including the Deputy Director of the National Energy Administration, Wang Yumin, disclosed that "Several Opinions on Further Deepening the Reform of the Electric Power System" will soon be introduced.

It is understood that the National Development and Reform Commission has formulated relevant supporting documents and pilot work opinions on the above-mentioned framework.

Some industry insiders confirmed to the "Securities Daily" reporter that the framework for the new electricity reform program "Four Releases, Independence, and Strengthening" has basically been determined. The key lies in the implementation of the next detailed implementation rules and pilot work.

“After the natural gas price reform has taken an ice-breaking move, I believe that the electric power reform is also not far from us.” Shen Xiaohongyuan Securities analyst Liu Xiaoning stated that the electric reform policy is expected to open up the marketization of the power generation and power sales market, and the national 5.5 The trillion-dollar-level market for trillion-dollar sales will soon start.

The electricity sales market has opened five major power generation groups or entered the first

In 2014, Guangdong Province implemented direct electricity purchase deepening reform, and Shenzhen took the lead in implementing transmission and distribution reforms. It must be said that the electric reform model in Guangdong Province has revealed the path of a new round of electric reform in China.

In January of this year, the National Development and Reform Commission approved the first regulatory cycle of the transmission and distribution tariff reform in Shenzhen to allow revenue and transmission and distribution tariffs. In addition, Western Inner Mongolia Power Grid was allowed to start the transmission and distribution reforms.

This also means that the reform has officially landed, and the power transmission and distribution reform is gradually expanding.

Rao Zhi, an analyst at Dongguan Securities, said that the reform of the power system will be carried out in a side-by-side manner. With the implementation and deepening of the Shenzhen pilot, more regions are expected to be included in the scope of the pilot, and the electrical reform is also expected to spread further with the expansion of the pilot.

It is understood that due to the dual pressures of falling demand for external transmission power and expansion of its own hydropower capacity, the electricity consumption of Yunnan's hydropower continues to grow, and direct purchases of electricity may continue to expand. In addition, the planning of power generation installations in the three northeastern provinces far exceeds the transmission capacity of the newly built UHV channels. The commercialization of electricity prices can reduce the cost of industrial electricity and absorb excess generation capacity.

In this regard, Liu Xiaoning believes that an area with a multiple power grid transmission and distribution end and excess power supply capacity may be the first pilot area to carry out a new round of electric reform.

It is worth noting that with the gradual advancement of electric power reform, the release of power-selling side has formed a stronger expectation in the market. The new round of reform will strengthen the competition mechanism on the side of power sales, and form a market-based new mechanism for power sales.

Rao Zhi also stated that after the establishment of the transmission and distribution price mechanism, with the liberalization of the power sales market, more market players will participate in the sales cycle in the future. Among them, power generation companies such as the five major power groups and those with financial strength Private capital groups are expected to be the first to enter the market, and the market for electricity sales, which is directly linked to supply and demand and market-based pricing, will gradually form and grow.

“With independently-sold electricity resources and large-scale power generation companies, they have more sales channels and production advantages, and they are more conducive to involving the sales and marketing business,” Liu Xiaoning also said.