Review and current situation of the hottest energy

Review and current situation of energy price reform

on November 10, the national development and Reform Commission issued the opinions on comprehensively deepening the reform of the price mechanism, clarifying the "road map" for price reform in the next three years. In terms of energy prices, corresponding requirements are also put forward for coal, electricity, oil, gas, new energy, etc. Specifically, it mainly includes the following contents:

1 Electricity: in combination with the plan of orderly release and development of electricity, expand the range of power generation and sales prices formed in the market, accelerate the trading in the electricity market, improve the trading price rules in the electricity market, and improve the h-residual indentation depth system of coal and electricity price linkage machine. We will exercise strict supervision over power transmission and distribution, and comprehensively carry out the supervision and examination of pricing costs. We will study the gradual reduction of power cross subsidies and improve household electricity price policies

2. Refined oil: adhere to the direction of marketization and further improve the price formation mechanism of refined oil

3. Natural gas: deepen the market-oriented reform of natural gas prices for non residential use, liberalize gas source prices and sales prices in a timely manner, improve the price mechanism for residential gas use, and speed up the construction of natural gas trading centers in Shanghai and Chongqing. We will strictly supervise the transportation of natural gas pipelines and comprehensively carry out the supervision and examination of pricing costs

4. Renewable energy: according to technological progress and market supply and demand, implement the mechanism of declining electricity price on the benchmark of new energy such as wind power and photovoltaic. By 2020, the electricity price on wind power is equivalent to that on coal-fired power generation, and that on photovoltaic power is equivalent to that on electricity sales. Improve the price formation mechanism of large-scale hydropower across provinces and regions. Carry out the pilot of distributed new energy consumption nearby, explore the way to determine the price of new energy power generation through market-oriented bidding, study the price mechanism conducive to the development of energy storage, promote the healthy development of the whole industrial chain of new energy, and reduce the demand for new subsidy funds

in view of the above, this paper briefly combs the process of energy price reform and presents the current situation of the reform for reference

electricity price adjustment since 2005

the first coal and electricity price linkage was launched on May 1, 2005. The electricity price increased by 2.3 cents/kWh, and the sales electricity price increased by 2.52 cents/kWh. However, since then, the price of power coal has continued to rise, resulting in the connection between transportation and demand in 2006. The two sides have been unable to reach an agreement on the supply and demand price, and the negotiation has once again fallen into a stalemate

the second time was on July 1st, 2006. In 2008, the third and fourth price linkage of coal and electricity was implemented continuously. Due to the increase of coal demand and the imposition of "coal resource tax", "deposit for mine environmental restoration and governance" and "funds for coal mine production conversion and development", the profits of coal production enterprises were further reduced

on December 25, 2012, the coal electricity linkage mechanism ushered in a "new version". The State Council issued the guiding opinions on deepening the market-oriented reform of power coal, which revised the linkage mechanism: when the price fluctuation of power coal exceeds 5%, the electricity price will be adjusted accordingly on an annual basis, and the proportion of power enterprises to absorb the fluctuation of coal price will be adjusted from 30% to 10%. The electricity price has been adjusted twice, but the coal electricity linkage is not involved. During this period, the electricity price of coal-fired power generation has also experienced many adjustments, but the coal-fired power linkage has not been started

the fifth formal coal and electricity price linkage took place seven years later. The executive meeting of the State Council held on April 8th, 2015 decided to reduce the average electricity price of coal-fired power generation nationwide by about 2 cents per kilowatt hour in accordance with the coal-fired power price linkage mechanism. At the end of 2015, the national development and Reform Commission issued the notice on matters related to improving the coal electricity price linkage mechanism, announced that the improved coal electricity linkage mechanism would be implemented from January 1, 2016, and announced the benchmark and specific contents of the improved mechanism

the Sixth Coal and electricity price linkage comes every other year. From January 1, 2016, the national development and Reform Commission said that the national average electricity price per kilowatt hour for coal-fired power generation would be reduced by about 3 cents, while the national average electricity price per kilowatt hour for general industrial and commercial sales would be reduced by about 3 cents. This is the first show after the "new mechanism"

second, the power market reform reduces the power consumption cost of enterprises

the new round of power reform promotes the market-oriented reform of price in competitive links. In March, 2015, the CPC Central Committee and the State Council issued several opinions on further deepening the reform of the power system (Zhongfa [2015] No. 9). As the top-level design scheme, Zhongfa No. 9 document described a blueprint for a new round of power system reform. In 2016, the national market-oriented trading electricity exceeded 1trillion kwh, accounting for about 19% of the total social electricity consumption. Among them, the direct purchase of electricity by large users is close to 800billion kwh, with an average decrease of 6.4 points, reducing the annual electricity expenditure of enterprises by about 50billion yuan. Up to now, the pilot reform of transmission and distribution electricity prices has achieved full coverage of provincial electricity, and 28 provincial electricity prices have been announced. After the reform of transmission and distribution electricity price, the average transmission and distribution electricity price is less than the current purchase and sale price, with an average reduction of nearly 1 cent per kilowatt hour, and the allowable income of 32 provincial-level electricity is reduced by about 48billion yuan

adjust the electricity price structure and reduce the electricity price surcharge. The average collection standard of funds and surcharges included in the sales price decreased from 5.4 points to 3.05 points, and the proportion in the sales price decreased from 8.18% to 4.66%. Cancel the urban public utility surcharges levied on users, cancel the electrification railway loan repayment electricity price, cancel the special funds for industrial enterprise structural adjustment levied in the electricity price, and reduce the collection standards of major water conservancy project construction funds and large and medium-sized reservoir resettlement late support funds by 25% respectively. At present, China's renewable energy surcharge standard is 1.9 points/kWh. With the support of price policy, the new energy industry has entered the fast lane, and the technical level of the whole industry chain has been continuously improved. Since 2009, the technical level of wind power and photovoltaic industry has been significantly improved, and the project cost has decreased significantly. According to the progress of new energy technology and the reduction of project costs, at the end of 2016, the national development and Reform Commission implemented the mechanism of declining the benchmark price of photovoltaic power generation and onshore wind power, significantly reducing the benchmark price of newly put into operation photovoltaic power stations in 2017 and appropriately reducing the benchmark price of newly put into operation onshore wind power in 2018

III reform process of oil product price formation mechanism

for a long time before 1998, Chinese oil product users enjoyed the treatment of low oil prices. The adjustment of oil prices has always been determined by the state, often an adjustment, and remained unchanged for a long time. In 1993, China became a net importer of oil, and it is no longer appropriate for the government to set prices completely. "Li Chao also believes that it is appropriate, and it is not in line with the trend of market economy. In 1998, with the reorganization of PetroChina and Sinopec, the oil price reform also kicked off

start the price reform of refined oil. On June 3, 1998, the former State Development Planning Commission issued the "crude oil and refined oil price reform plan", which basically established a price formation mechanism based on market prices under the control of the government to adapt to the changes in international oil prices. It is stipulated that the settlement price of crude oil transactions between PetroChina and Sinopec shall be determined by both parties through negotiation, and the price consists of crude oil benchmark price and discount

realize the full integration of China's oil price with the international market. Since June, 2000, the domestic oil price of finished products has been adjusted according to the price changes in the international market, once a month. At that time, the reference was only the oil price in Singapore market. From May 2000 to November 2001, the price of domestic refined oil has been adjusted 17 times with the change of oil price in the international market

since November 2001, China has promoted the reform of refined oil pricing mechanism. The core of this reform is to change the price of domestic refined oil to adjust the price of domestic refined oil with reference to the market prices of Singapore, Rotterdam and New York. When the fluctuation range of international oil price is within the range of 5% - 8%, the oil price will remain unchanged. If it exceeds this range, the national development and Reform Commission will adjust the retail standard price

implement comprehensive supporting reform of oil prices. On March 26th, 2006, the national development and Reform Commission (NDRC) announced an increase in the oil price of finished products and implemented a comprehensive reform of oil prices. The plan includes two major contents: first, the oil price of finished products is determined based on the crude oil price in the international market, plus domestic reasonable processing costs and appropriate profits, instead of directly connecting with the international oil price expressed by ET (MPA). The second is to launch "four supporting mechanisms": including the establishment of upstream and downstream interest adjustment mechanisms within oil enterprises; Establish the price linkage mechanism of relevant industries; Establish a subsidy mechanism for some vulnerable groups such as grain farmers and some public welfare industries; Establish a fiscal adjustment mechanism for the revenue from crude oil price rise

implement the reform of refined oil prices and taxes, and straighten out the prices of refined oil. On December 18, 2008, the State Council issued the notice on implementing the reform of refined oil prices and taxes (GF [2008] No. 37), pointing out that the current unit tax of refined oil consumption tax should be increased, no new fuel tax should be established, and the existing tax system, collection methods and collection and management means should be used to effectively connect the work related to the reform of refined oil taxes. Domestic onshore crude oil prices will continue to be directly linked to the international market. The price of domestic refined oil continues to be indirectly connected with the international market in a controlled way

the institutionalized adjustment of refined oil prices has become the norm. On March 26, 2013, the notice on further improving the price formation mechanism of refined oil (fgjg [2013] No. 624) was issued to further improve the price mechanism of refined oil. The core content is to shorten the price adjustment cycle and adjust the price of domestic refined oil to be linked to oil. The adjustment period of gasoline and diesel prices was shortened from 22 working days to 10 working days. At the same time, the limit of price adjustment only when the oil price fluctuates by 4% in the international market was removed. This move is known as a key step for the price of refined oil to move towards marketization, marking the "first shot" of the government to substantially promote the market-oriented reform of the price of resource products, and is an important milestone in the energy industry

set "ceiling price" and "floor price". On May 7, 2009, the national development and Reform Commission issued the measures for the administration of oil prices (for Trial Implementation). According to the implementation of the measures for the administration of oil prices (Trial) in recent years and the improvement of the refined oil price mechanism this time, on January 13, 2016, the national development and Reform Commission revised and formed the measures for the administration of oil prices, setting the upper and lower limits of regulation, with the upper limit of $130 per barrel and the lower limit of $40 per barrel

IV. the marketization degree of natural gas price has been significantly improved

China's clear natural gas price marketization reform began at the end of 2005. Affected by various factors, the progress is slow, and it has been advancing along the idea of "government simulating the market" until the end of 2013. Since the 18th CPC National Congress, the reform has been carried out quickly and steadily in accordance with the general idea of "controlling the middle and liberalizing both ends"

the price formation mechanism of natural gas is gradually liberalized. In 2005, the national development and Reform Commission changed the ex factory price of natural gas to the government guided price. At the end of 2011, the pilot reform of natural gas price formation mechanism was carried out in Guangdong and Guangxi. Adjust the price management of natural gas from the ex factory link to the gate station link, implement the maximum ceiling price management, change the pricing method from "cost plus" pricing to "market net return value" pricing, and establish a dynamic adjustment mechanism linking the price of natural gas with fuel oil, liquefied petroleum gas and other alternative energy