Electricity Regulatory Commission: Pushing Power System Reform to Grasp Six Major Regulations

The State Electricity Regulatory Commission's 2012 working meeting was held in Beijing on the 10th. Wu Xinxiong, chairman of the State Electricity Regulatory Commission, said at the meeting that in 2012, the SERC should give prominence to the “six major supervisions” and pragmatically promote “three reform tasks” such as separation of plant and network, separation and distribution of electricity, and adjustment of electricity prices. To serve the national energy development strategy, serve the local economic and social development, serve the power industry and power companies, serve the people and other "four supervision services."

Wu Xinxiong said at the meeting that this year will focus on the key and pragmatically promote the three power system reforms. The first is to further consolidate the results of the separation of the plant network (ie, power plants and power grids) in 2002, conduct a thorough investigation of power generation assets owned by power grid companies, and put forward regulatory advice. The second is to formulate a trial operation plan for the comprehensive reform of the transmission and distribution system and promote pilot work. The third is to resolve the contradiction between coal and electricity as the starting point, explore and advance the reform of electricity pricing mechanism.

It is necessary to pragmatically promote this "three reform tasks" in accordance with the ideas of "there are laws, principles, fair rules, reasonable prices, and separate government and enterprises." Actively implement the “four regulatory services” that serve the country’s energy development strategy, serve local economic and social development, serve the power industry and power companies, and serve the people.

Wu Xinxiong emphasized that this year we must also focus on the following "six major supervisions":

First, we must focus on safety supervision. We will improve the laws and regulations concerning electricity safety production, establish and improve the working mechanism for supervision of electric power safety so that no major political power-supply accidents will occur, no blackouts will occur in the power grid, and no major power accidents or casualties will occur.

The second is to focus on market access supervision. Improve market access and withdrawal conditions, and improve market access and withdrawal systems. Establish and improve the licensing and communication coordination mechanism, improve the access requirements for wind power, small hydropower, etc., and make safety assessment and ecological environment assessment a precondition. Establish a sound networked access security supervision and coordination mechanism and give full play to the role of the license in ensuring the safe operation of the power system. Establish and improve follow-up supervision and coordination mechanisms for licenses, investigate and deal with illegal and irregular business operations according to law, and earnestly maintain market order. Issue special supervision reports, increase disclosure of information, and urge enterprises to implement rectification.

The third is to focus on cost and price supervision. Formulate and improve rules and regulations related to price and cost. We will do a good job in the early warning, monitoring and analysis of the cost management of power generation enterprises and put forward relevant countermeasures and suggestions. Scientifically define the transmission and distribution interfaces, define the cost components of transmission and distribution, and select enterprises to conduct supervision and pilot projects. We will do a good job in reviewing and adjusting cross-regional transmission prices according to regulations, and promote cross-regional power trading and coordinated development of cross-regional power grids. Conduct cross-provincial cross-regional electricity price special inspections, implement relevant electricity price policies, and regulate inter-provincial cross-regional electricity price charge behaviors. Actively cooperate with the relevant departments to promote the reform of electricity prices and rationalize the formation mechanism of electricity prices.

The fourth is to focus on power trading supervision. Formulate and improve regulations, rules, and regulations that are compatible with cross-provincial cross-regional power trading. Based on the existing transmission channels, the plan for cross-regional power emergency and accident support transactions in winter and cross-provincial provinces with peak summer and peak winter peaks was studied, and supervisory opinions on optimal dispatch were proposed. Explore the establishment of the contractual power of the plant network and the electricity optimization mechanism of cascade hydropower stations in the river basin, and actively carry out trials. Further improve the auxiliary service compensation and operation management assessment mechanism. Strengthen the price regulation of power transactions and encourage buyers and sellers to negotiate transactions within the scope of the national electricity price policy. Strengthen the fair, timely, and reasonable supervision of power and electricity bill settlement to protect the legitimate rights and interests of power companies. Strengthen the disclosure of energy trading information to ensure orderly, transparent, fair and equitable power trading.

The fifth is to focus on energy-saving emission reduction supervision. Conscientiously implement the spirit of the National Conference on Energy Conservation and Emissions Reduction held by the State Council, and formulate and improve regulations and methods within the scope of duties of the State Electricity Regulatory Commission. Strengthen the supervision of power dispatching, optimize the dispatching methods, rationally carry out the adjustment of surplus and deficiency, and prevent the abandonment of electricity, abandoned water, and abandoned wind. Strengthen the full-scale acquisition and supervision of renewable energy power generation and fully support the rational development and utilization of clean energy. Strengthen the supervision of power generation rights trading, and increase the number of hours of energy-efficient and efficient cleaning unit power generation. Play the key role of the license to promote the shutting down of small thermal power units. The construction of an online monitoring platform for energy conservation and emission reduction should be well established to ensure that the desulfurization, denitrification, and other facilities are put into operation, as well as stable and standards-compliant operation.

Sixth, we must focus on the quality supervision of residential electricity service. Formulate and improve regulations, systems, and standards for the quality of power supply services, and implement qualitative and quantitative supervision. The enterprises are urged to implement the planned notice notification system for power outages, the fault repair system, the standard electrical installation report system, the electricity bill list system and the smooth complaint system. We must urge enterprises to do a good job of filing and receiving electricity for affordable housing, reduce or eliminate relevant expenses, and increase work efficiency and service levels. We will establish demonstration counties (districts, cities) that will improve the quality of residential electricity service, and take measures to improve the quality of residents' services. Strengthen the supervision of electricity universal services, and increase the supervision and service of the electricity-free villages and electricity-free households. Continuing to carry out the "three designated" special treatment of electricity projects, earnestly maintaining the order of the electricity market and safeguarding the rights and interests of all parties.