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Power reform disputes need to be decided in time


It has been more than five years since the new round of power system reform has been advanced. The reform directions proposed in the six core supporting documents of transmission and distribution prices, power markets, power trading institutions, power generation and consumption plans, power sales side reform, and self-provided power plant supervision are all proposed. Some results have been achieved. Although the incremental power distribution business is included in the reform of the electricity sales side and is not listed separately, it shoulders the important task of introducing market competition into monopoly areas and removing the mystery of transmission and distribution costs. This is undoubtedly this round of power system reform. "Frontier Position".


The incremental power distribution reform pilot has announced the list of five batches of projects so far, and more and more investors have participated in the reform. With the application, approval, construction, and operation of these projects, the incremental power distribution reform is facing challenges in actual progress. A typical contradiction is becoming more and more clear: between the emerging market entities actively participating in the reform and the "reform target" power grid companies, there may be conflicts in the division of interests, or differences in policy understanding, but often lack a "judge" to come. Decide on disputes.

At present, there are as many as 459 incremental power distribution reform pilot projects. Outside of the pilot list, there are also many incremental power distribution projects carried out by means of franchising. The continued advancement of the incremental power distribution reform pilot can certainly convey the country's perseverance and determination to promote reform to the market, and maintain the attention and confidence of market entities in the reform work. However, with the continuous increase in participation in reform pilot projects, on the one hand, the market participants participating in the reform are mixed, the quality of the projects is uneven, and speculators and rent seekers are mixed among them; on the other hand, investors who really want to participate in the reform process have paid. The high cost of time and money, the above-mentioned key issues and contradictions have been delayed, and many projects are in a dilemma.

The "project list" is getting longer and longer, but the "question list" has not been shortened. Throughout the incremental power distribution reform process in recent years, the market position of incremental power distribution projects is unclear, the pricing mechanism is difficult to guarantee reasonable returns, and the identification of stock assets is unclear. Problems have appeared since the first batch of pilot projects were promoted, but until the fifth The above-mentioned problems have not yet been effectively resolved.

As part of the infrastructure, the incremental power distribution project itself has to bear the risks of high initial investment and long return period. If the already exposed contradictions and conflicts cannot be resolved, there is no policy support or promulgation for the new demands. The policy cannot actually be implemented, and no investor will "face up to difficulties."

Many market entities that have newly entered the field of power distribution report that they have felt huge resistance from power grid companies during the project. Grid companies have been responsible for ensuring the safety of power supply and supporting economic construction for many years. At the same time, there are problems that the cost is difficult to straighten out. The latter is the reason for the country to carry out incremental power distribution reform: incremental power distribution projects will be in the field of power distribution. The introduction of competition forces grid companies to clarify the cost of power distribution and transmission, opening up the road to this round of power system reform.

Incremental power distribution reform is difficult, is it the fault of the power grid? Reform is bound to shake the existing interests of power grid companies, and it is normal for them to have a negative attitude towards reforms, and the sheer resistance of them reflects the necessity of reforms. The crux of the problem is that in order for new market players to get a "cake", they must rely on regulatory and policy inclination. However, the various functional departments responsible for leading the reform, as the “referees” who are supposed to dominate this rule, often introduce competitors without reasonable rulings, leaving investors involved in incremental power distribution projects “isolated”.

Sports competitions cannot be without referees. This is not only to ensure fairness, but also to make judgments in time when disputes occur so that the competition can continue. If the incremental power distribution reform lacks the ruling of the competent authority, the rights that the incremental power distribution project should enjoy cannot be guaranteed, the grid company has not fulfilled its obligations without penalty, and the two parties have no place to defend when a dispute arises, and the reform will eventually be deadlocked .

In fact, the market position, rights and obligations of similar incremental power distribution projects have long been clarified in the policies issued by the National Development and Reform Commission and several provincial development and reform commissions. However, “the law is not enough to be self-sufficient”, and the policy cannot only stay in the fax of documents and meeting minutes. It requires managers to take responsibility and implement them in order to truly affect the reform.

At the national level, it is necessary to pass clearer and more enforceable rules to give local governments a clear authorization to make them dare to act and have laws to follow; clear access, operation and maintenance, and exit standards and procedures for incremental power distribution projects , So that it develops healthily under sound rules. At the local level, we should recognize the importance of incremental power distribution reform. We should not be confined to short-term interests, and we should actively improve the process and policy environment for market players, and be a good referee.

Reposted by Shanghai Richeng This article is sourced from "China Energy News" (04th edition on November 9, 2020)

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