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Ten major issues affecting the implementation of electricity price regulation policies in high energy consuming industries
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Date:2022-03-09

In recent years, in order to curb the blind development of high energy consuming and high polluting industries, reduce air pollution, improve energy utilization efficiency, and promote economic structural adjustment, the National Development and Reform Commission and relevant departments have successively introduced a series of electricity price regulation policies. With the approval of the State Council, in 2004, the National Development and Reform Commission and the State Electricity Regulatory Commission implemented differential electricity price policies for six types of high energy consuming enterprises, including electrolytic aluminum, ferroalloys, calcium carbide, caustic soda, cement, and steel. In 2006, zinc smelting and yellow phosphorus industries were added, and the differential electricity price increase standard was gradually raised over three years. Recently, the National Development and Reform Commission has further raised the differential electricity price increase standard, deciding to increase the electricity price increase standard for restricted enterprises from the current 0.05 yuan to 0.10 yuan and for eliminated enterprises from 0.20 yuan to 0.30 yuan from June 1, 2010. In order to encourage thermal power enterprises to install desulfurization facilities and improve the operation rate and efficiency of desulfurization devices, and strictly control sulfur dioxide emissions, in May 2007, the National Development and Reform Commission and the former State Environmental Protection Administration jointly issued the "Measures for the Operation and Management of Desulfurization Electricity Prices and Facilities for Coal fired Power Generation Units (Trial)", which decided to increase the on grid electricity price of coal-fired power plants equipped with desulfurization devices by 1.5 cents per kilowatt hour. In order to effectively promote power generation enterprises to "go up the big and suppress the small", and guide small thermal power units to transfer electricity to high-efficiency units, the country has determined unified benchmark grid electricity prices for hydro thermal power in different regions according to price zones. At the same time, the excess electricity price has been cancelled.

It should be said that the above-mentioned electricity price regulation policies have played an important role in restricting the rapid development of high energy consuming industries, phasing out outdated production capacity, encouraging power generation enterprises to accelerate environmental protection and desulfurization, promoting economic structural adjustment and transformation of economic development mode. However, from the current situation, the above policies have not been fully implemented, and there are still a large number of problems that violate national policies and regulations, which are highlighted in the following ten aspects:

One is that some local governments and their relevant departments, as well as some power grid enterprises, violate national policies and regulations by not implementing, delaying, or reducing the implementation of differential electricity pricing policies for high energy consuming enterprises;

Secondly, some local governments and their relevant departments have exceeded their management authority and arbitrarily formulated and implemented preferential electricity prices for high energy consuming enterprises; Some places even issue preferential electricity pricing policy documents in the name of provincial governments or provincial price regulatory departments;

The third is to implement preferential electricity prices for relatively high energy consuming enterprises or industrial parks in the name of direct or bilateral transactions between power users and power generation enterprises without approval;

Fourthly, some small power grids or self owned power plants in certain areas violate power supply regulations by providing preferential electricity prices to high energy consuming enterprises without authorization, resulting in the inability to fully implement differential electricity pricing policies and creating blind spots;

Fifth, some power generation enterprises have implemented the desulfurization electricity price policy in advance without passing the acceptance inspection of the national or provincial environmental protection department and obtaining approval from the price management department;

Sixth, power generation enterprises enjoy the national desulfurization electricity price policy but do not operate the desulfurization equipment according to regulations. The desulfurization equipment is turned on and off, and even does not operate at all, but still settles the desulfurization surcharge based on the amount of electricity generated by the main engine during operation;

Seventh, power grid enterprises refuse to implement or fail to implement the desulfurization electricity price in a timely manner, or adopt measures such as reducing the settlement of grid connected electricity to indirectly lower the desulfurization electricity price standard, and even deduct the desulfurization electricity price of power generation enterprises without authorization;

Eighth, power grid enterprises violate the national policy on grid electricity prices by lowering or indirectly lowering the grid electricity prices of power generation enterprises;

Nine is that power grid enterprises use excessive power generation, cross provincial and cross regional electricity trading, and transfer the loss of preferential electricity prices under the guise of preferential electricity prices, forcing power generation enterprises to lower their on grid electricity prices;

Ten is that after the state explicitly cancels the excess power generation price, some power grid enterprises still settle with power generation enterprises for lower than the prescribed grid electricity price standard, citing "excess power generation", and pay less grid electricity fees.