Source: Official WeChat Account of Photovoltaic Information
Development and Reform Commissions of all 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.:
To further deepen the reform of transmission and distribution prices, better ensure the safe and stable supply of electricity, and promote the high-quality development of the power industry, the relevant matters concerning the provincial power grid transmission and distribution prices for the third regulatory cycle are hereby notified as follows:
1. In accordance with the *Notice of the National Development and Reform Commission and the National Energy Administration on Issuing the Measures for the Cost Supervision and Review of Transmission and Distribution Pricing* (Fa Gai Jia Ge Gui 〔2019〕 No. 897), the *Notice of the National Development and Reform Commission on Issuing the Measures for Pricing of Provincial Power Grid Transmission and Distribution Prices* (Fa Gai Jia Ge Gui 〔2020〕 No. 101), and other relevant regulations, the transmission and distribution prices of each provincial power grid for the third regulatory cycle are verified, as detailed in the annex.
2. User electricity prices shall be gradually merged into three categories: residential electricity, agricultural production electricity, and industrial and commercial electricity (electricity other than that subject to residential and agricultural production electricity prices). In areas where industrial and commercial electricity prices have not yet been unified, user electricity prices may be divided into four categories: residential electricity, agricultural production electricity, large industrial electricity, and general industrial and commercial electricity (electricity other than that subject to residential, agricultural production, and large industrial electricity prices).
3. For industrial and commercial users (or users of large industrial electricity and general industrial and commercial electricity, hereinafter referred to as industrial and commercial users):
- Those with an electricity capacity of 100 kVA and below shall implement a single-tariff system.
- Those with a capacity between 100 kVA and 315 kVA may choose to implement either the single-tariff system or the two-part tariff system.
- Those with a capacity of 315 kVA and above shall implement the two-part tariff system; users currently on the single-tariff system may choose to continue with it or switch to the two-part tariff system.
- For two-part tariff users who choose the demand tariff billing method, if the monthly electricity consumption per kVA reaches 260 kWh or more, the demand tariff for the month shall be implemented at 90% of the standard verified in this notice. The monthly electricity consumption per kVA is calculated as the total monthly electricity consumption of all metering points belonging to the user divided by the contracted transformer capacity.
4. The electricity price for industrial and commercial users consists of the grid-connected electricity price, grid-connected line loss fees, transmission and distribution price, system operation fees, and government funds and surcharges.
- System operation fees include auxiliary service fees, pumped storage capacity fees, etc.
- Grid-connected line loss fees are calculated based on the actual purchased grid-connected electricity price and the comprehensive line loss rate. In areas where the electricity market does not yet support users to directly purchase line loss electricity, grid enterprises shall continue to act as agents for purchasing line loss electricity, and the profit or loss from such agency purchases shall be apportioned or shared among all industrial and commercial users on a monthly basis.
5. Residential and agricultural production electricity shall continue to implement the current catalog sales price policy.
6. Provincial price authorities shall carefully organize and arrange to ensure the smooth implementation of transmission and distribution prices, coordinate with the grid enterprises' agency electricity purchase system, closely monitor the implementation of transmission and distribution prices, and report any problems to the Commission (Price Department) in a timely manner. Grid enterprises shall strictly implement the transmission and distribution prices verified in this notice in accordance with relevant requirements, and promote the balanced development of power grids in a coordinated manner; they shall collect and statistics basic data related to transmission and distribution prices, such as assets, expenses, revenues, transmission, distribution and sales electricity quantities, loads, user connection capacity, line loss rates, and investment plan completion progress for each voltage level, and submit them to the Commission (Price Department) and provincial price authorities by the end of May each year.
This notice shall come into effect on June 1, 2023. In case of any inconsistency between the relevant provisions of the current policies and this notice, this notice shall prevail.
Annex: Provincial Power Grid Transmission and Distribution Price Table
National Development and Reform Commission
May 9, 2023
