Abstract On July 16, the National Development and Reform Commission and the National Energy Administration issued the "Notice on Actively Promoting the Market-based Trading of Power Markets to Further Improve the Trading Mechanism" (hereinafter referred to as the "Notice") and "To fully liberalize the power users' electricity use plans for some key industries." Implementation Plan (hereinafter referred to as...

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On July 16, the National Development and Reform Commission and the National Energy Administration issued the "Notice on Actively Promoting the Market-based Trading of Power Markets to Further Improve the Trading Mechanism" (hereinafter referred to as the "Notice") and the comprehensive implementation of the implementation of power generation plans for some key industries. The Plan (hereinafter referred to as the “Implementation Plan”), accelerate the promotion of power market transactions, improve the direct trading mechanism, and deepen the reform of the power system and take important steps.

In 2017, the marketized trading power reached 26% of the total electricity consumption of the whole society, and the average price reduction of electricity was about 5 points.

Since the launch of the new round of power system reform in 2015, the power market trading has been vigorously promoted. China has gradually established a market-oriented trading system with clear rules, orderly organization, various forms and diverse subjects.

The reforms have shown initial effects in terms of marketization and cost reduction. In 2017, all localities signed direct trading annual and monthly contracts and platform centralized trading contract power, plus other trading products such as inter-provincial market-based trading and power generation trading, and accumulated market-trading power of 1.63 trillion kWh, an increase of 45% over the same period of last year. %; the marketized trading power reached 26% of the total electricity consumption of the whole society, and the average price reduction of electricity was about 5 points. In the first half of the year, the market-oriented trading of electricity continued to advance, and the forms of trading varieties continued to be innovative and rich. The market-operated trading volume exceeded 800 billion kWh, a year-on-year increase of 24.6%.

At the end of last year, the Central Economic Work Conference proposed to accelerate the construction of the electricity market in 2018 and substantially increase the proportion of market-oriented transactions. This year's "Government Work Report" also proposed to accelerate the market-oriented reform of factor prices. To this end, the reform of power market-oriented transactions has taken the trend and challenged the difficulties.

Significantly increase the scale of market-based trading power, plan to let go, and remove restrictions. The "Notice" proposes to further promote the liberalization of power generation plans. In addition to priority power generation such as clean energy and regulated power supply, the user side has priority to purchase electricity in addition to residents, agriculture, important public utilities and public welfare services. Other operating power generation should be released. All localities should abolish the restrictions on market participants to participate in cross-provincial cross-regional power market transactions, and encourage cross-provincial cross-regional networks to directly trade online and network-to-point. At the same time, it supports power users to conduct market-oriented transactions with clean energy power generation companies such as hydropower, wind power, solar power, and nuclear power.

Significantly increase the scale of market-based transaction power, increase the participation of the supply side, and promote various types of power generation enterprises to enter the market. The "Notice" requires that the coal-fired power units approved in 2015 after the promulgation and implementation of the "Opinions of the Central Committee of the Communist Party of China and the State Council on Further Deepening the Reform of the Electric Power System" will be incorporated into market-oriented transactions after the project is put into operation, and at the same time promote hydropower, wind power, solar power, nuclear power, and distribution. Power generation, etc. enter the market. Enterprises with coal-fired self-supplied power plants shall bear government funds and additional, policy cross-subsidies, universal services and social responsibilities in accordance with relevant state regulations, obtain power business licenses, meet energy efficiency and environmental protection requirements, and become qualified market entities. Will be eligible to participate in the transaction in accordance with the trading rules.

Significantly increase the scale of market-based transaction power, but also to increase the enthusiasm of the demand side, let go of qualified users to enter the market. The "Notice" proposes to further liberalize the user's voltage level and power consumption limit, and eligible users of 10 kV and above can participate in the transaction. Users who support more than 5 million kilowatt-hours of electricity per year are engaged in direct power transactions with power generation companies.

"Notice" supports high-value-added emerging industries such as high-tech, Internet, and big data, as well as enterprises with distinctive advantages and characteristics and high-tech enterprises participating in the transaction, which are not subject to voltage levels and power consumption restrictions." National Development and Reform Commission economic operation Zhao Chenxi, Director of the Regulatory Bureau, said that the "Notice" also supports industrial parks, industrial parks and economic and technological development zones as a whole to participate in transactions; conditions permit areas, commercial enterprises outside large industrial users can also liberalize into the market; Under the conditions, the public service industry enterprises such as railways, airports, municipal lighting, water supply, gas supply and heating will be safely released to participate in the transaction.

The four industries have become the focus of reform, and the price formation mechanism of “reference price + floating mechanism” has been established.

In order to ensure a significant increase in the proportion of power market transactions , China selected coal, steel, nonferrous metals and building materials in 2018, and took the lead in comprehensively developing pilot projects for power generation , further expanding the transaction scale, improving the trading mechanism, and forming new reforms. Breakthrough and focus.

"These four key industries have a high degree of marketization. They have participated in market-oriented transactions in the process of power system reform. The market has rich experience, and the pilot comprehensive development of power consumption plans has a good foundation." Zhao Chenxi said.

According to the “Implementation Plan”, these four industry power users follow the basic principles of “should be put to the utmost”, and the users participate in the transaction with full power; users with conditions, synchronous development of electricity plans and electricity prices, are negotiated by users and power generation companies. Determine the power supply method and price mechanism.

The sweetness of pilot companies participating in the reform is real. According to the “Implementation Plan”, market-based transactions between power users and clean energy in key industries can appropriately reduce cross-subsidies; encourage market participants involved in cross-provincial market-based transactions to increase clean energy supply and negotiate Moderately reduce cross-provincial trans-regional transmission prices.

So how do you conduct market-oriented transactions?

On the one hand, power generation companies, users and power-selling enterprises entering the market must register and publicize in the trading institutions and be included in the market main catalogue in order to be eligible for trading. Market entities choose to enter the market and cannot withdraw within 3 years.

On the other hand, it depends on a scientific and rational market-based price formation mechanism. Since this year, power users in key industries such as coal, steel, nonferrous metals and building materials have participated in market-based transactions, and catalogue tariffs are no longer implemented. Encourage power users and power generation enterprises to negotiate independently when signing power market-oriented transaction contracts, and agree to establish a market-based price formation mechanism of “reference price + floating mechanism”.

The so-called "baseline price" means that both parties to the transaction independently choose a reasonable benchmark coal price based on the source of coal from the power generation enterprise, and determine the corresponding power generation price as the benchmark price of the transaction contract. The negotiation between the two parties is not consistent. It is recommended to refer to the grid-connected electricity price of coal-fired power grid or the power generation price corresponding to the medium- and long-term contract price of coal. The "floating mechanism" means that when a user and a power generation enterprise sign a power market-oriented transaction contract, they can independently negotiate a price floating mechanism, comprehensively consider various market influencing factors, and negotiate a floating reference standard, a floating period, and a floating ratio. If the negotiation is not consistent, it is recommended to consider the power generation cost and various market factors comprehensively, and implement floating, which can be adjusted once a quarter.

"The Implementation Plan defines the target tasks, lists detailed timetables and roadmaps, and ensures that the power generation plans of the four industry users are fully released," said Zhao Chenxi.

The reform adheres to the principle of active and steady, ensuring that users' safe and reliable power supply is not affected.

Reform into the deep water area, the concerns of stakeholders can not be ignored. Many users are worried about choosing a market-oriented transaction and being forced to use electricity. If the user chooses to withdraw from the market-oriented transaction, will it be forced to power off or ask for the price? Power generation companies are also worried that after signing the contract, users will quit at will, and who will be responsible for the loss?

"The reform adheres to the principle of active and steady, ensuring that users' safe and reliable power supply is not affected, and that the interruption of power supply to users due to entering the power market will never be allowed." Zhao Chenxi said that power grid enterprises must bear the responsibility of guaranteeing power supply, and fail to sign Power users of direct trading contracts, as well as power users who participate in market-based transactions and withdraw from the market, provide guaranteed power supply services and charge electricity bills in accordance with relevant policies.

Steadily pushing forward reforms, "tangible hands" cannot be offside. The "Notice" requires that relevant departments of all regions should minimize the intervention of micro-transactions, fully respect and give play to the market subject status of enterprises, and must not interfere with enterprises to sign contracts, and must not force enterprises to determine electricity and electricity prices, and must not interfere with contract performance, and must not be implemented. Local protection.

Steady progress in reform, "tangible hands" can not be absent. There are disputes in the market, and post-event supervision is very important. The "Notice" requires that all relevant departments should establish and improve a coordination and arbitration mechanism for transaction contract disputes, promptly arbitrate disputes arising from market participants in the contract performance process, create a fair and equitable market environment, and resolutely avoid the reliable supply of users due to contract disputes. Influencing, properly solving problems such as the difficulty of implementing contracts due to force majeure factors, and avoiding unfair treatment of market participants. For market entities that violate the trading rules and have untrustworthy behaviors, if they include bad credit records, if the circumstances are particularly serious or refuse to be rectified, they will also be included in the blacklist of untrustworthy enterprises.

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