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NDRC launches power transmission & distribution price pilot reform in Shenzhen

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2014-11-06 GMT+8:00

BEIJING, Nov. 4 (Xinhua) – China's National Development and Reform Commission (NDRC), the country's top economic planner, on Tuesday released a circular on launching power transmission and distribution price pilot reform in Shenzhen, which marks the start of a new round of power transmission and distribution price reform.

According to the circular, Shenzhen's power transmission and distribution price pilot reform will replace current grid owners' profit-making pattern of obtaining price differences between power purchase and sales by adopting general revenue supervision.

Based on grid companies' effective assets, local government will set a allowable cost and allowable return, therefore fix grid owners' general revenue; and the government will give an independent power transmission and distribution price.

In the meantime, the new policy clarifies method for setting allowable cost for power transmission and distribution.

Besides, the circular also clarifies to promote marketization of power price at both power generation side and power sales side after establishing an independent power transmission and distribution price system, and power grid companies can collect wheeling cost based on government verified price. (Edited by Hou Yujie, houyj@xinhua.org)

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