The National Development and Reform Commission issued a notice on further deepening the market-oriented reform of on-grid tariff of coal-fired power generation.

　　National Development and Reform Commission on further deepening

　　Coal-fired power generationNotice of market-oriented reform of on-grid electricity price

　　Development and Reform Price [2021] No.1439

　　Development and Reform Commission of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan, Xinjiang Production and Construction Corps, Huaneng Group, Datang Group, Huadian Group, National Power Investment Group, National Energy Group, SDIC Power Co., Ltd., State Grid Co., Ltd., China Southern Power Grid Co., Ltd. and Inner Mongolia Electric Power (Group) Co., Ltd.:

　　In order to implement the decision-making arrangements of the CPC Central Committee and the State Council, accelerate the reform of electricity price marketization, improve the mechanism of electricity price determination mainly by the market, and ensure the safe and stable supply of electricity, we hereby notify you of further deepening the market-oriented reform of on-grid electricity price for coal-fired power generation and related matters as follows:

　　First, the general idea

　　In accordance with the overall requirements of the power system reform of "controlling the middle and letting go of both ends", the on-grid electricity price of all coal-fired power generation will be released in an orderly manner, the fluctuation range of market transaction electricity price will be expanded, all industrial and commercial users will be promoted to enter the market, the electricity price of industrial and commercial catalogues will be abolished, the price of electricity for residents, agriculture and public welfare undertakings will be kept stable, the decisive role of the market in resource allocation will be given full play, the role of the government will be better played, the safe and stable supply of electricity will be guaranteed, the industrial structure will be optimized and upgraded, and the construction of a new power system will

　　Second, the reform content

　　(a) orderly release all coal-fired power generation on-grid tariff.In principle, all coal-fired power generation capacity enters the power market, and the on-grid electricity price is formed within the range of "benchmark price+fluctuation" through market transactions. The current benchmark price of coal-fired power generation continues to be the benchmark for the formation of new energy power generation prices.

　　(two) to expand the fluctuation range of market transaction price.The floating range of the transaction price in the coal-fired power generation market will not exceed 10% and 15% in principle, and it will be expanded to 20% in principle, and the transaction price of high-energy-consuming enterprises will not be restricted by 20%. The spot price of electricity is not limited by the above range.

　　(3) Promote industrial and commercial users to enter the market.All localities should promote all industrial and commercial users to enter the electricity market in an orderly manner, purchase electricity at market prices, and cancel the sales price of industrial and commercial catalogues. At present, users who have not yet entered the market, users of 10 kV and above should all enter, and other users should also enter as soon as possible. For users who have not directly purchased electricity from the electricity market, the power grid enterprises will purchase electricity on their behalf, and the price for purchasing electricity on their behalf will be mainly formed through centralized bidding or competitive bidding. When selling electricity to the agent users for the first time, the users will be notified at least one month in advance. Users who have participated in market transactions and changed to power grid enterprises to purchase electricity as agents will be charged 1.5 times the price of power grid enterprises to purchase electricity as agents for other users.

　　Encourage local governments to implement phased preferential policies for small and micro enterprises and individual industrial and commercial households.

　　(four) to maintain the stability of residential and agricultural electricity prices.Residents (including schools, social welfare institutions, community service centers and other public welfare users) and agricultural electricity are guaranteed by power grid enterprises, and the current catalogue sales electricity price policy is implemented. All localities should give priority to the use of low-cost power sources to protect residents and agricultural electricity.

　　Third, safeguard measures

　　(1) comprehensively promote the construction of the electricity market.Strengthen policy coordination to meet the needs of all industrial and commercial users to enter the power market, and further liberalize various power generation plans; Improve the power market system, speed up the cultivation of qualified power sellers, enrich medium and long-term trading varieties, speed up the construction of spot power market, strengthen the construction of auxiliary service market, and explore the establishment of market-oriented capacity compensation mechanism.

　　(two) to strengthen the convergence with the time-of-use electricity price policy.All localities should speed up the implementation of the time-of-use electricity price policy, establish a peak electricity price mechanism, and guide users to use electricity at wrong peaks and cut off peaks to fill valleys. Where the spot electricity market is not operating, it is necessary to make a good connection between market transactions and the time-of-use electricity price policy. If the electricity consumption curve is not declared in the market transaction contract and the peak-valley ratio of the market electricity price is lower than the local time-of-use electricity price policy requirements, the electricity purchase price at the time of settlement shall be implemented according to the peak-valley period and floating ratio of the local time-of-use electricity price.

　　(3) Avoid unreasonable administrative intervention.All localities should promote the construction of the electricity market in strict accordance with the requirements of relevant national policies, formulate and constantly improve the market trading rules, set unreasonable thresholds for power users and power generation enterprises to enter the electricity market, organize special electricity trading, and intervene in the reasonable fluctuation of the market trading price within the prescribed scope to ensure fairness, justice and openness of market trading. The National Development and Reform Commission, together with relevant departments, will further strengthen guidance and promptly urge the rectification of unreasonable local administrative interventions through interviews and notifications.

　　(4) Strengthen the supervision of the coal-fired power market.Local development and reform departments should pay close attention to the market dynamics and price changes of coal and electricity, actively investigate and deal with market participants’ price collusion, price drive-up, implementation of monopoly agreements, abuse of market dominance, power enterprises and trading institutions’ participation in special electricity trading and settlement of electricity charges, and local governments’ abuse of administrative power to exclude and restrict market competition in a timely manner, and publicly expose typical cases to maintain good market order. Guide power generation enterprises, especially coal-electricity joint ventures, to consider the operating benefits of upstream and downstream businesses as a whole, participate in electricity market quotation reasonably, and promote the rational formation of market transaction prices.

　　Local development and reform departments should fully understand the significance of further deepening the market-oriented reform of on-grid electricity price of coal-fired power generation under the current situation, unify their thinking, clarify their responsibilities, and carefully organize and implement the work together with relevant departments and power enterprises; It is necessary to strengthen policy propaganda and interpretation, respond to social concerns in a timely manner, enhance understanding and support from all sides, and ensure that reforms are smoothly introduced and effective.

　　This notice shall be implemented as of October 15, 2021. If the current policies are inconsistent with this notice, the provisions of this notice shall prevail.

　　National Development and Reform Commission

　　October 11th, 2021