The latest notice from the National Development and Reform Commission! Provincial Power Grid Transmission and Distribution Prices Released!

On May 15, the National Development and Reform Commission (NDRC) issued the Notice on Provincial Power Grid Transmission and Distribution Prices and Related Matters in the Third Regulatory Cycle (hereinafter referred to as the Notice). According to

the Notice, industrial and commercial (or large industrial and general industrial and commercial) users who use electricity with a capacity of 100 kilovolt-amperes or less will be subject to a single system of electricity prices, and those who use electricity between 100 kilovolt-amperes and 315 kilovolt-amperes may choose to implement a single system or a two-part system of electricity prices; 315 kilovolt-ampere and above, the implementation of two-part tariff, the current implementation of a single tariff users can choose to implement a single tariff or two-part tariff. For two-part users who choose to implement the demand tariff charging method, if the monthly electricity consumption per kilovolt-ampere reaches 260 kilowatt-hours or more, the demand tariff of the month shall be implemented according to 90% of the standard approved by this circular. Power consumption per kilovolt-ampere per month is the total power consumption of all metering points of the user in the month divided by the capacity of the contract transformer. Notice

of the

National Development and Reform Commission on the Transmission and Distribution Prices of Provincial Power Grids and Related Matters in the Third Regulatory Cycle

Development and Reform Price [2023] 526

Development and Reform Commissions of Provinces, Autonomous Regions and Municipalities directly under the Central Government. State Grid Corporation of China, China Southern Power Grid Co., Ltd., Inner Mongolia Electric Power (Group) Co., Ltd.:

In order to further deepen the reform of transmission and distribution price, better guarantee the safe and stable supply of electricity, and promote the high-quality development of the power industry, The transmission and distribution price of provincial power grids in the third regulatory cycle and related matters are hereby notified as follows:

I. In accordance with the Notice of the National Development and Reform Commission and the National Energy Administration on Printing and Distributing the Measures for Supervision and Examination of Transmission and Distribution Pricing Costs (FGJG [2019] No.897), the Notice of the National Development and Reform Commission on Printing and Distributing the Measures for Supervision and Examination of Transmission and Distribution Pricing Costs (FGJG [2019] No.897), the Notice of the National Development and Reform Commission on Supervision and Examination of Transmission and Distribution Pricing Costs ( Notice on Provincial Power Grid Transmission and Distribution Price Pricing Method (FGJG [2020] No.101) and relevant regulations, verify the provincial power grid transmission and distribution price in the third regulatory period, see the annex for details.

2. Electricity prices for users are gradually merged into three categories: residential, agricultural and industrial and commercial electricity (except for the implementation of electricity prices for residential and agricultural production); In places where the same price for industry and commerce has not yet been realized, the price of electricity for users can be divided into four categories: residential life, agricultural production, large industry and general industrial and commercial electricity (except for the implementation of residential life, agricultural production and large industrial electricity prices).

3. For industrial and commercial (or large industrial and general industrial and commercial) users (hereinafter referred to as industrial and commercial users), if the power consumption capacity is 100 kilovolt-amperes or less, a single system of electricity price shall be implemented; if the power consumption capacity is between 100 kilovolt-amperes and 315 kilovolt-amperes, a single system or a two-part system of electricity price may be implemented; 315 kilovolt-ampere and above, the implementation of two-part tariff, the current implementation of a single tariff users can choose to implement a single tariff or two-part tariff. For two-part users who choose to implement the demand tariff charging method, if the monthly electricity consumption per kilovolt-ampere reaches 260 kilowatt-hours or more, the demand tariff of the month shall be implemented according to 90% of the standard approved by this circular. Power consumption per kilovolt-ampere per month is the total power consumption of all metering points of the user in the month divided by the capacity of the contract transformer.

4. The price of electricity for industrial and commercial users consists of the price of electricity on the grid, the cost of line loss on the grid, the price of transmission and distribution, the cost of system operation, government funds and surcharges.

System operating costs include ancillary service costs, electricity charges for pumped storage capacity, etc. The line loss cost

of on-grid link is calculated according to the actual on-grid price of electricity purchased and the comprehensive line loss rate. Where the electricity market does not support users to purchase line loss electricity directly for the time being, the power grid enterprises shall continue to purchase line loss electricity on behalf of the power grid enterprises, and the profits and losses of the agent purchasing shall be shared or shared with all industrial and commercial users on a monthly basis.

5. The current catalogue sales price policy shall continue to be implemented for residential and agricultural production.

6. The competent price department at the provincial level shall organize meticulously and arrange carefully to ensure the smooth implementation of the transmission and distribution price, coordinate with the power grid enterprise agency purchase system, closely monitor the implementation of the transmission and distribution price, and report the problems found to the Commission (Price Department) in a timely manner. Power grid enterprises shall, in accordance with relevant requirements, strictly implement the transmission and distribution prices approved in this circular, and promote the balanced development of the power grid as a whole; The basic data related to transmission and distribution price, such as assets, expenses, income, transmission and distribution electricity, load, installed capacity reported by users, line loss rate and completion progress of investment plan, shall be collected and reported to the Commission (Price Department) and provincial price authorities before the end of May each year.

This Circular shall be implemented as of June 1, 2023. Where the relevant provisions of the existing policies are inconsistent with this Circular, the provisions of this Circular shall prevail.

Attachment: Provincial Power Grid Transmission and Distribution Price Table

National Development and Reform Commission

May 9