In order to implement the "Several 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" (No. 9 [2015] of the Central Committee of the Communist Party of China) and promote the implementation of the reform of the electric power system, with the approval of the State Council, the National Development and Reform Commission and the National Energy Administration recently issued the "Implementation Opinions on Promoting the Reform of Transmission and Distribution Prices", "Implementation Opinions on Promoting the Construction of the Electricity Market", "Implementation Opinions on the Establishment and Standardized Operation of Power Trading Institutions", "About Implementation Opinions on Orderly Development and Electricity Consumption Plan", "Implementation Opinions on Promoting the Reform of the Sales Side", "Guidance on Strengthening and Standardizing the Supervision and Management of Coal-fired Self-owned Power Plants opinions and other 6 power system reform supporting documents. On issues of concern to all sectors of society, the reporter interviewed relevant persons in charge of the National Development and Reform Commission and the National Energy Administration.

Q: What is the overall goal of promoting the reform of transmission and distribution prices? What is the significance of establishing an independent transmission and distribution price system?

Answer: Electricity price reform is an important part of the power system reform. The "Several 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" (Zhongfa [2015] No. 9, hereinafter referred to as Document No. 9) deploys the separate verification of transmission and distribution prices and the orderly liberalization of competitive link electricity prices other than transmission and distribution. Reform tasks. The "Implementation Opinions on Promoting the Reform of Transmission and Distribution Prices" further clarifies that, in accordance with the principle of "permitted costs plus reasonable benefits", the total permitted income and voltage-level transmission and distribution prices of power grid enterprises are approved, and clear rules, reasonable levels, strong supervision, and scientific Transparent independent transmission and distribution price system.

Separate approval of transmission and distribution prices is the basis for market-oriented transactions and the premise of liberalizing competitive business, which is of great significance for restoring the attributes of electricity commodities and realizing the goal of power system reform in an all-round way. Specifically, it is mainly reflected in the following four aspects:

One is to reduce the cost of electricity for enterprises and society. After the reform, the price of transmission and distribution is relatively fixed, and the fluctuation of power generation price will be directly transmitted to the price of electricity sales. At present, in the case of relatively loose power supply and demand and lower coal prices, power users with the right to choose can reduce the cost of electricity through direct transactions with power generation companies, thereby bringing reform dividends to power users.

The second is to play the role of price in regulating supply and demand. The smooth transmission of price signals will form a virtuous circle of consumption driving production and production promoting consumption. As far as power production is concerned, "fixed production by sales" will restrain the blind expansion impulse of power generation enterprises; as far as power consumption is concerned, the market-oriented pricing mechanism will effectively restrain unreasonable power demand.

The third is to standardize the operation mode of power grid enterprises. After the reform, power grid enterprises will charge over-grid fees in accordance with the transmission and distribution prices approved by the government, and will no longer take the price difference between the above-grid price and the sales price as the main source of income, which can ensure that they are fair and open to all users and improve their services.

Four is to strengthen the cost constraints of power grid enterprises. Through strict examination of the permitted cost of power grid enterprises, power grid enterprises can be promoted to improve management, reduce unreasonable expenditure, inhibit unreasonable investment, reduce costs and improve efficiency.

Question: Regarding the reform of transmission and distribution prices, what specific measures are put forward in the "Implementation Opinions on Promoting the Reform of Transmission and Distribution Prices?

Answer: In order to accelerate the reform of transmission and distribution prices, the "Implementation Opinions on Promoting the Reform of Transmission and Distribution Prices" put forward four specific measures:

The first is to gradually expand the scope of the pilot reform of transmission and distribution prices. On the basis of Shenzhen and western Inner Mongolia taking the lead in carrying out the pilot reform of transmission and distribution price, Anhui, Hubei, Ningxia, Yunnan and Guizhou provinces (districts) will be included in the pilot scope of transmission and distribution price reform. At the same time, the implementation opinions make it clear that all areas that carry out comprehensive pilot projects of power system reform shall be directly included in the pilot scope of transmission and distribution price reform. Encourage other regions with the conditions to carry out pilot projects and cover the whole country as soon as possible.

The second is to seriously carry out the calculation of transmission and distribution prices. For the pilot areas, the National Development and Reform Commission uniformly organizes cost supervision and examination, and strictly reduces irrelevant and unreasonable investments and costs in accordance with the "measures for Supervision and examination of Transmission and Distribution pricing costs"; for non-pilot areas, on the basis of carrying out cost investigation, the permitted total income of the power grid and the transmission and distribution prices of voltage levels are calculated on the basis of effective assets.

The third is to promote cross-subsidy reform by classification. Combined with the electricity price reform process, supporting the reform of cross-subsidies between different types of electricity prices, gradually reduce cross-subsidies within industry and commerce, and properly handle cross-subsidies for residents and agricultural users.

The fourth is to clarify the transmission and distribution price policy for direct electricity trading during the transition period. In areas where the transmission and distribution price has been set, direct power transactions shall be carried out in accordance with the approved transmission and distribution price; in areas where the transmission and distribution price has not been separately approved, the method of keeping the purchase and sale price difference of the power grid unchanged can be adopted, that is, how much the power generation enterprise's feed-in price is adjusted, how much the sales price is adjusted, and the price difference remains unchanged.

Q: In the process of electricity transmission and distribution price reform, how will cross-subsidies be handled?

Answer: Under the current mechanism, my country's sales electricity prices include government funds such as the national major water conservancy project construction fund, rural power grid loan repayment funds, renewable energy development funds, large and medium-sized reservoir resettlement support funds, and urban public utility surcharges. Policy-based cross-subsidies consistent with policies, electricity prices objectively include policy cross-subsidies such as industrial and commercial subsidies for residents, urban subsidies for rural areas, high-voltage subsidies for low-voltage subsidies, and low-voltage subsidies. Moderate cross-subsidies are conducive to the implementation of national macro-policies and the protection of universal power services; however, if the cross-subsidies are too heavy, it is not conducive to guiding users to consume reasonably and burden fairly.

Zhongfa No. 9 proposed to properly handle the cross-subsidy of electricity prices, combine the electricity price reform process, and reform the cross-subsidy between different types of electricity prices to ensure that the electricity prices of residents, agriculture, important public utilities and public welfare services are relatively stable. The implementation opinions on promoting the reform of transmission and distribution prices further clarify the operational requirements. Namely:

-- During the transition period, the power grid enterprises shall declare the amount of cross-subsidy between the existing various types of user electricity prices, which shall be recovered through the transmission and distribution price after being examined and approved by the government price department.

-- After the reform of transmission and distribution prices, the transmission and distribution prices for each voltage level of the power grid are approved according to the assets, costs, electricity, line loss rate, etc. of each voltage level of the power grid, and the cross-subsidies enjoyed by residents, agriculture, etc. and the cross-subsidies borne by industrial and commercial users are calculated and listed separately.

Q: What are the components of the electricity market? What is the implementation path of electricity market construction?

A: The electricity market consists mainly of medium-and long-term markets and in stock markets. The medium-and long-term market mainly carries out multi-year, annual, quarterly, monthly, weekly and other daily electricity energy trading and interruptable load, pressure regulation and other auxiliary service transactions. The in stock market mainly carries out day-ahead, intraday, real-time electric energy trading and backup, FM and other ancillary services trading. When conditions are ripe, explore trading in capacity markets, power futures and derivatives.

The Implementation Opinions on Promoting the Construction of the Electricity Market make it clear that the implementation path of the construction of the electricity market is: orderly release of the development of electricity consumption plans, competitive link electricity prices, continuous expansion of the scope of market entities involved in direct transactions and the scale of electricity, and gradually establish a market-oriented cross-provincial power trading mechanism. Select qualified areas to carry out pilot projects, build a relatively complete power market, including medium-and long-term and in stock markets; sum up experience, improve mechanisms, enrich varieties, and expand the scope of pilot projects as appropriate; and gradually establish a power market system in line with national conditions.

-- Non-pilot areas carry out market-oriented transactions in accordance with the Opinions on the Implementation of the Plan for the Orderly Development of Electricity.

-- The pilot area may, according to the local actual situation, separately formulate the path of the orderly development of electricity plan.

-- The retail market conducts market-oriented transactions in accordance with the Implementation Opinions on Promoting the Reform of the Sale Side.

Q: As we all know, the construction and operation of the electricity market is an extremely complex process that requires a sound supporting mechanism. May I ask: What are the key tasks deployed in the Implementation Opinions on Promoting the Construction of the Electricity Market?

Answer: The Implementation Opinions on Promoting the Construction of the Electricity Market requires that the construction of the electricity market be promoted from nine aspects:

One is the formation of relatively independent power trading institutions.

The second is to build a technical support system for electricity market transactions.

The third is to establish a system of priority purchase and priority power generation. To ensure public welfare, regulatory power generation and power generation, give priority to the purchase of electricity and power generation, adhere to the priority of clean energy to the Internet, and gradually form a market-based power balance mechanism on the premise of ensuring the balance of supply and demand.

Fourth, establish a relatively stable medium-and long-term trading mechanism. Priority purchase of electricity and priority generation of electricity shall be regarded as annual electricity energy transaction contracts. Auxiliary services such as load interruption and pressure regulation can be contracted for medium-and long-term transactions.

Fifth, improve the trans-provincial and trans-regional power trading mechanism. To medium-and long-term transactions as the main, temporary transactions as a supplement, to encourage power generation enterprises, power users, electricity sales subjects, etc. through competition to buy and sell electricity across provinces and regions.

Sixth, establish an effective competitive in stock trading mechanism.

Seventh, the establishment of auxiliary services trading mechanism.

The eighth is to form a new mechanism for renewable energy to participate in market competition. Renewable energy within the plan gives priority to power generation, priority power generation contracts are transferable, renewable energy is encouraged to participate in the power market, and renewable energy is encouraged to be included across provinces and regions.

Nine is to establish a market risk prevention mechanism.

Q: What are the respective responsibilities of the regional electricity market and the provincial electricity market?

A: The power market system is divided into regional and provincial (regional, municipal) power markets, with no level between markets. The regional power market includes two types of power markets that optimize the allocation of resources within a large range of the country and a certain range.

The function of optimizing the allocation of resources on a large scale throughout the country is mainly realized through the Beijing Electric Power Trading Center (established by relying on the State Grid Corporation) and the Guangzhou Electric Power Trading Center (established by relying on the Southern Power Grid Corporation), which is responsible for implementing national plans and local government agreements. promote market-oriented cross-provincial and cross-regional transactions.

The function of optimizing the allocation of resources within a certain range is mainly realized in the corresponding regional power market through medium-and long-term trading and in stock trading.

The provincial (regional, municipal) power market mainly carries out medium-and long-term transactions and in stock transactions within the province (region, city). Electricity markets for in stock trading are not set up repeatedly in the same region.

Q: In the future electricity market, which enterprises or users can become market players? What are the access conditions?

Answer: The "Implementation Opinions on Promoting the Construction of the Electricity Market" clarified that the main body of the electricity market includes various power generation companies, power supply companies (including local power grids, wholesale counties, high-tech industrial parks, and economic and technological development zones, etc.), power sales companies and power users Wait. All kinds of market entities shall meet the requirements of national energy conservation, emission reduction and environmental protection, meet the requirements of industrial policies, and register with trading institutions. When participating in cross-provincial and cross-regional transactions, you can participate in the transaction on the trading platform where any party is located, or you can entrust a third-party agent.

In terms of access conditions, the basic requirements for power generation enterprises and users are:

-For power generation companies participating in market transactions, their projects should comply with national regulations, and unit energy consumption, environmental protection emissions, and grid safety should meet national and industry standards. Newly approved generating units participate in electricity market transactions in principle.

-- Users participating in market transactions shall be power users with access voltage above a certain voltage level and large capacity and power consumption. In principle, new industrial users should enter the market.

-Users who meet the access conditions, after choosing to enter the market, should participate in market transactions with all electricity, and no longer purchase electricity at government prices. For users who meet the access conditions but do not choose to participate in direct transactions or purchase electricity from power sales enterprises, the local power supply enterprises shall provide guaranteed services and purchase electricity according to government pricing. After users choose to enter the market, they cannot exit within a certain period of time.

Question: The "Several 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" put forward the requirement of "establishing a relatively independent power trading organization. What are the "independence" and "relativity" of trading institutions?

A: in accordance with the requirements of Zhongfa No. 9, the implementation opinions on the establishment and standardized operation of power trading institutions have made clear provisions on the establishment of relatively independent trading institutions from the aspects of functional orientation, organizational form, system framework, personnel and income sources.

The "independence" of trading institutions is mainly reflected in: first, in terms of trading functions, trading institutions are responsible for market trading organizations; second, in terms of organizational form, trading institutions can be set up in accordance with the articles of association and rules approved by the government, which can adopt the company system and membership system; third, in terms of operation and management, trading institutions have people, money and things suitable for performing trading duties, and can charge reasonable fees to market subjects, daily management and operation are not interfered by market entities and are subject to government supervision; fourth, in terms of personnel appointment, senior managers are recommend by the market management committee and appointed in accordance with organizational procedures in accordance with the law.

The "relativity" of trading institutions is mainly reflected in: first, it is established on the basis of the existing basic conditions of power grid enterprises, and the personnel of trading institutions can be based on the existing personnel of power grid enterprises; second, it can adopt the organizational forms such as the company system relatively controlled by power grid enterprises, the subsidiary system of power grid enterprises, and the membership system; third, at the initial stage of establishment, the way in which power grid enterprises provide electricity settlement services can be maintained; fourth, there is no clear attribution of the functions of the previous transactions in the trading business, but based on the practical operation of the situation and experience, gradually clear and standardize the functional boundaries of the trading institutions and scheduling agencies.

Q: Why is the Market Management Committee established? What are the functions of the Market Management Committee?

Answer: In order to maintain the fairness, justice, and openness of the market, protect the legitimate rights and interests of market entities, and fully reflect the wishes of all parties, the "Implementation Opinions on the Establishment and Standardized Operation of Power Trading Institutions" puts forward the requirements for the establishment of a market management committee.

The Market Management Committee is responsible for studying and discussing the articles of association, trading and operating rules of trading institutions, coordinating matters related to the electricity market, etc., and implementing reasonable deliberative mechanisms such as voting according to the categories of market entities.

The market management committee is composed of representatives selected by power grid companies, power generation companies, power sales companies, and power users according to categories. The National Energy Administration and its dispatched agencies and relevant government departments may send personnel to participate in relevant meetings of the market management committee.

Q: How do enterprises and users enter the market to become trading entities?

Answer: The "Implementation Opinions on the Establishment and Standardized Operation of Electric Power Trading Institutions" clarifies that market members implement registration management.

The provincial government or the department authorized by the provincial government shall publish the local power generation enterprises and power sales entities that meet the standards on an annual basis, and implement dynamic supervision of the user directory.

Power generation enterprises, electricity sales entities and users who enter the catalogue may voluntarily register with trading institutions as market trading entities.

In accordance with the regulations on access to the electricity market, trading institutions accept applications submitted by market members to enter the market, sign market entry agreements and trading platform use agreements with market members, handle trading platform use account numbers and digital certificates, and manage market members' registration information and archives.

Registered market members can participate in various types of electricity transactions online through the trading platform, sign electronic contracts, access trading information, etc.

Q: What is the general idea of promoting the reform of the electricity generation plan?

Answer: The "Several 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" proposes to promote the reform of the power generation and use plan, and orderly liberalize the power generation and use plan other than public welfare and regulation. The Opinions on the Implementation of the Electricity Plan for Orderly Development and Development further clarify the general idea of the reform of the electricity generation plan:

Through the establishment of a priority purchase system to protect the power of users without bargaining power.

Through the establishment of priority power generation system to ensure clean energy power generation, regulatory power generation priority online.

Through direct trading, electricity market and other market-oriented trading methods, gradually liberalize other power generation plans.

On the premise of ensuring the balance of power supply and demand and ensuring social order, we should realize the smooth transition of power balance from planning means to market means, and promote energy conservation and emission reduction.

Question: Public welfare power services are the basis for achieving universal power services. These users have low bargaining power or even no bargaining power. What measures will be taken to ensure priority purchase of electricity while the electricity plan is released?

A: in order to protect the electricity consumption of users without bargaining power, the opinions on the implementation of the plan for orderly release and development of electricity consumption clearly defines the requirements for the establishment of a priority purchase system and puts forward four safeguard measures:

One is the generator set to share. The electricity corresponding to the priority purchase of electricity is shared by all public generating units, and the corresponding sales price and feed-in price are subject to government pricing.

The second is to strengthen demand-side management. On the basis of load control system and electricity information collection system, the national power demand side management platform is established and improved. On the basis of the preliminary pilot, the demand-side mobile peak-shaving capacity, which accounts for about 3% of the maximum power load, is gradually formed to ensure the balance of power supply and demand in the case of slight power shortage.

Three is the implementation of orderly electricity. Develop an orderly electricity plan. In the event of a power shortage or major emergency, the priority purchase of electricity users to ensure power supply, other users in accordance with the orderly power plan to determine the order and the corresponding proportion of the share of the obligation to limit electricity.

Four is to strengthen the old and young border poor areas of power supply security. Increase relevant investment to ensure full coverage of electricity for the population without electricity.

Q: What measures will be taken to ensure priority power generation while releasing and developing electricity consumption plans.

Answer: In order to ensure that clean energy power generation and regulatory power generation are given priority to the Internet, the ''Implementation Opinions on the Orderly Development and Electricity Utilization Plan'' clarified the requirements for establishing a priority power generation system and proposed four safeguard measures:

One is to leave enough planning space. The "implementation opinions" make it clear that when various localities arrange annual power generation plans, they should fully reserve space for power generation. Among them, wind power, solar power generation, biomass power generation, waste heat and pressure residual gas power generation in accordance with resource conditions in full arrangement of power generation, hydropower taking into account resource conditions, historical average and comprehensive utilization requirements to determine the amount of power generation, nuclear power in the case of ensuring safety, taking into account the need to arrange power generation.

The second is to strengthen the transmission and consumption of electricity. The "Implementation Opinions" proposed that in principle, the proportion of renewable energy power generation should be clarified in cross-provincial and cross-regional power transmission and reception.

Three is the unified forecast force. The "Implementation Opinions" clearly state that the dispatching agency is uniformly responsible for forecasting the output of wind power and solar power generation within the dispatching scope, making full use of the forecasting and dispatching results of hydropower, doing a good job in balancing power and electricity, and promoting clean energy to give priority to the Internet on the premise of ensuring the safe operation of the power grid. When faced with the situation of abandoning water and wind and light, timely forecast the relevant dispatching and unit operation information.

Fourth, organize the implementation of substitution, while achieving priority power generation can be traded. The "Implementation Opinions" require that the technical specifications for thermal power operation be revised to improve the flexibility of peak shaving and make room for peak shaving for the consumption of renewable energy. Encourage trading in alternative power generation and peak-shaving ancillary services.

Q: After the liberalization of the electricity-selling side market, which market players can engage in the electricity-selling business?

A: the implementation opinions on promoting the reform of the electricity sales side pointed out that opening up the electricity sales business to social capital and cultivating the main body of competition in the electricity sales side market in various ways will help more users to have the right to choose and improve the quality of electricity sales service and the level of user energy consumption.

According to the implementation opinions, power grid enterprises provide universal power services to all kinds of users in the power supply business area, ensure basic power supply, and undertake the minimum power supply service in their power supply business area; power generation enterprises and other social capital can invest in the establishment of power sales companies; users with distributed power supply, public service industries such as water supply, gas supply and heating, Energy-saving service companies can engage in market-oriented power sales.

After the reform of the electricity sales side, the electricity sales entities participating in the competition can be divided into three categories: first, the electricity sales companies of power grid enterprises.

The "Implementation Opinions" also clarified that there can be multiple power sales companies in the same power supply business area, but only one company can own the right to operate the distribution network and provide guaranteed power supply services. The same electricity sales company can sell electricity in multiple power supply business areas.

Q: What are the requirements for the entry and exit of electricity sales entities in the Implementation Opinions on Promoting the Reform of the Electricity Sales Side?

Answer: In accordance with the principle of streamlining administration and delegating power, the "Implementation Opinions on Promoting the Reform of the Electricity Sales Side" has made innovative arrangements for the entry and exit mechanisms of the electricity sales side market. This is a bright spot in the new round of power system reform.

In terms of access mechanism, registration and recognition will be used instead of administrative licensing to reduce administrative costs, achieve effective supervision and improve work efficiency. The focus is "one commitment, one publicity, one registration, two filing".

"One commitment" means that market entities that meet the access conditions should apply to the provincial government or the department authorized by the provincial government, submit relevant materials in accordance with regulations, and make credit commitments.

"One publicity" means that the provincial government or the departments authorized by the provincial government publicize the information, relevant materials and credit commitments of whether the market entities meet the access conditions through the government designated websites such as "Credit China. If there is no objection at the expiration of the publicity period, it will be included in the annual list of market subjects, and dynamic management will be implemented.

"One registration" means that the market subject listed in the catalogue may register with the trading institution that organizes the transaction and be allowed to participate in the transaction.

"Two filings", that is, in the energy regulatory agencies and credit management agencies for the record.

In terms of the exit mechanism, the "Implementation Opinions" clarified that market entities that violate relevant national laws and regulations, seriously violate trading rules, and go bankrupt must be forced to withdraw from the market, be blacklisted, and must not enter the market again, and the provincial government or the provincial government The authorized department is deleted from the catalog, and the trading institution cancels the registration. Before the market entity withdraws, all signed power purchase and sale contracts should be fulfilled or transferred, and related matters should be handled.

Question: What are the considerations for taking the "Guiding Opinions on Strengthening and Regulating the Supervision and Management of Coal-fired Self-provided Power Plants" as one of the supporting documents?

Answer: my country's self-provided power plants are mainly concentrated in high-capacity industries such as steel, cement, electrolytic aluminum, and petrochemicals. They are distributed in resource-rich areas and some economically developed areas. The unit types are mainly coal-fired units. Coal-fired self-provided units account for more than 70%. In 2014, the installed capacity of my country's self-owned power plants exceeded 0.11 billion kilowatts, accounting for about 8% of the country's total installed power generation capacity that year.

Self-provided power plants have played an active role in reducing production costs and promoting the transformation of resource advantages in resource-rich areas. However, there are also many problems in the construction and operation of self-provided power plants, such as: the phenomenon of non-nuclear construction and non-conformity of approval construction is more serious; energy consumption indicators and emission levels are generally high, and there is a significant gap with public units; operation and management level Low, poor operational reliability; low enthusiasm to participate in power grid peak shaving, insufficient social responsibility, etc.

With the expansion of the installed scale of self-provided power plants and the improvement of energy efficiency and environmental protection standards in the thermal power industry, further strengthen and standardize the supervision and management of self-provided power plants, and gradually promote the same management of self-provided power plants and public power plants, which is conducive to strengthening the overall planning of power and promoting the orderly development of self-provided power plants. It is conducive to improving energy efficiency and reducing air pollutant emissions, realize the optimal allocation of resources.

Therefore, the guiding opinions on strengthening and standardizing the supervision and management of coal-fired self-provided power plants put forward clear requirements for the standardized development of coal-fired self-provided power plants from the aspects of planning and construction, operation management, responsibility and obligation, energy conservation and emission reduction, market transaction, supervision and management, so as to create a market environment of equal competition between self-provided power plants and public power plants.

Q: What conditions should grid-connected self-owned power plants meet to participate in market transactions? What rules should they comply?

Answer: The "Guiding Opinions on Strengthening and Regulating the Supervision and Management of Coal-fired Self-provided Power Plants" clarified the relevant requirements for coal-fired self-provided power plants to become qualified market entities and participate in market transactions.

In terms of access conditions, the Guiding Opinions put forward five requirements: one is to comply with national industrial policies and meet energy efficiency and environmental protection requirements; the other is to undertake government funds established by the state in accordance with laws and regulations, and comply with industrial policies The third is to fairly assume the social responsibility of power generation companies; the fourth is to enter the catalog of trading entities published by governments at all levels and register with trading agencies; fifth, to meet other relevant provisions for self-owned power plants to participate in market transactions.

In terms of trading rules, the Guiding Opinions clarify that after enterprises with self-provided power plants become the main body of the qualified power generation market, they will orderly promote their spontaneous and non-self-use electricity transactions directly with the main body of electricity sales and power users in accordance with the trading rules, or through trading institutions Conduct transactions; enterprises that own self-provided power plants but cannot meet their own electricity needs shall bear the government funds established by the state in accordance with laws and regulations, and after the policy cross-subsidy in line with the industrial policy, it can be regarded as ordinary power users and participate in the market purchase of electricity on an equal footing.

Q: The supporting documents have been issued, and the new round of power system reform will enter a critical stage of full implementation. May I ask: How is the current progress of the pilot work of power system reform?

Answer: After the release of the "Several 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", local governments, electric power companies and all sectors of society have paid great attention to the reform of the electric power system. After the formation of supporting documents, with the further clarification of specific policies, many places put forward the requirements of carrying out pilot projects of various types of power system reform. Up to now, the National Development and Reform Commission and the National Energy Administration have approved Yunnan Province and Guizhou Province to carry out comprehensive pilot projects for power system reform; Shenzhen, western Inner Mongolia, Anhui Province, Hubei Province, Ningxia Autonomous Region, Yunnan Province, and Guizhou Province have carried out transmission and distribution price reforms. Pilot projects; there are also a number of provinces that are about to launch pilot projects on the sales side of electricity, and a reform pilot pattern with comprehensive pilot projects for power system reform and multi-mode exploration has been initially established.

In terms of comprehensive pilot projects for power system reform, Yunnan and Guizhou provinces are typical power transmission provinces, and they have a strong demand for market-oriented transactions. The people's governments of the two provinces attach great importance to the reform of the electric power system, and put forward a systematic and thorough pilot program, which better takes into account the reform objectives and the interests of all parties, and has a certain degree of foresight and operability. it is in line with the reform direction determined by Zhongfa No. 9 and supporting documents, and embodies the principle of actively and steadily promoting reform. Taking Yunnan Province and Guizhou Province as the first batch of pilot projects is conducive to building an effective competitive market structure, forming a pilot pattern of differential exploration, ensuring the safety of power grid operation and power supply, and making substantial breakthroughs in reform.

With regard to the pilot reform of transmission and distribution prices, on the basis of the pilot reform of transmission and distribution prices in Shenzhen and western Inner Mongolia, since the beginning of this year, our committee has included Anhui, Hubei, Ningxia, Yunnan, and Guizhou in the pilot reform of transmission and distribution prices, and carried out the calculation of transmission and distribution prices in areas outside the pilot scope. According to the pilot scheme of transmission and distribution price reform in various places, the first regulatory cycle is three years (2016-2018). At present, the Commission has approved the first regulatory cycle of transmission and distribution of the western power grid in Inner Mongolia permitted income and electricity price level, which is China's first in accordance with the "permitted cost plus reasonable income" principle, can be directly used for power market transactions of the provincial power grid independent transmission and distribution price. Irrelevant and unreasonable costs are reduced through cost supervision and verification. The price reduction space is mainly used to reduce the large-scale industrial electricity price of Mengxi Power Grid by 2.65 cents per kilowatt-hour, with a price reduction amount of about 2.6 billion yuan.

In the next step, our committee will, in accordance with the principle of encouraging grass-roots innovation and supporting multi-mode exploration, actively support areas with reform willingness and operational plans to carry out pilot projects, guide all localities to refine pilot contents, improve supporting measures, and highlight work priorities. fully mobilize the enthusiasm of all parties to participate in the reform of the power system, ensure that the pilot work is carried out in a standardized and orderly manner, and steadily promote the reform of the power system.