Accelerate the reform of electricity price marketization, study and improve the formation mechanism of electricity price

Legal analysis: On June 24th, the Chinese government website published a message from the National Development and Reform Commission (NDRC) to netizens about "suggesting to improve the residential ladder electricity price system and encourage urban and rural residents to use more clean power resources". According to the National Development and Reform Commission, in order to further deepen the reform of electricity price marketization, the next step is to improve the residential ladder electricity price system, gradually ease the cross-subsidy of electricity price, make the electricity price better reflect the power supply cost, restore the commodity attribute of electricity, and form a residential electricity price mechanism that fully reflects the electricity cost, supply and demand and the scarcity of resources. In addition, the National Development and Reform Commission also mentioned that in order to encourage urban and rural residents to use more clean power resources and use less coal for heating, the Opinions on Clean Heating Price Policy in Northern China made it clear that the cost of clean heating electricity should be reduced by improving the time-of-use price system for peak and valley sales, optimizing the residential electricity ladder price policy, and vigorously promoting the market-oriented trading mechanism.

Legal basis: Notice of the National Development and Reform Commission on the Action Plan for Deepening the Reform of Price Mechanism during the Tenth Five-Year Plan Period III. Deepening the Reform of Energy Price (VI) Deepening the Reform of Electricity Price. Further improve the price formation mechanism of provincial power grids, regional power grids, inter-provincial and inter-regional special projects and incremental distribution networks, and speed up the rationalization of transmission and distribution price structure. We will continue to deepen the market-oriented reform of on-grid electricity prices such as coal-fired power generation, gas-fired power generation, hydropower and nuclear power, improve the price formation mechanism of wind power, photovoltaic power generation and pumped storage, and establish a new energy storage price mechanism. We will steadily push forward the reform of sales electricity price, orderly promote operating power users to enter the electricity market, and improve the residential ladder electricity price system.

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