Notice of the National Development and Reform Commission on the Provincial Grid Transmission and Distribution Prices and Related Matters in the Third Supervision Cycle

Polaris Power Network learned that the National Development and Reform Commission recently issued a provincial power grid transmission and distribution in the third regulatory cycleElectricity PriceNotice of related matters, Development and Reform Price [2023] No. 526, details are as follows:

Development and Reform Commissions of all provinces, autonomous regions, municipalities directly under the Central Government, State Grid Co., Ltd., China Southern Power Grid Co., Ltd., Inner Mongolia Electric Power (Group) Co., Ltd.:

To further deepenTransmission and distribution price reform, to better ensure the safe and stable supply of electricity and promote the high-quality development of the power industry, the following notice is hereby made on the provincial power grid transmission and distribution prices and related matters in the third regulatory cycle:

1. In accordance with the "Notice of the National Development and Reform Commission and the National Energy Administration on Issuing the

2. User electricity prices are gradually merged into three categories: residents' lives, agricultural production and industrial and commercial electricity (except for electricity consumption other than the prices for residents' lives and agricultural production); where the same price for industry and commerce has not yet been achieved, user electricity prices can be divided into four categories: residents' lives, agricultural production, large industry, and general industrial and commercial electricity (except for electricity consumption other than the prices for residents' lives, agricultural production and large industry electricity consumption).

3. For users who implement the electricity price for industrial and commercial (or large-scale industry, general industry and commerce) (hereinafter referred to as industrial and commercial users), if the capacity is 100 kVA and below, the single-system electricity price will be implemented; for users between 100 kVA and 315 kVA, they can choose to implement a single-system or two-piece electricity price; for users who implement a single-system electricity price will be implemented; for users who implement a single-system electricity price will be implemented; for users who currently implement a single-system electricity price will be selected to implement a single-system electricity price or two-piece electricity price. If a two-part user who chooses to implement the billing method of demand electricity price, if the monthly electricity consumption per kVA reaches 260 kilowatt-hours or more, the monthly demand electricity price shall be implemented according to the approved standards of this notice 90%. The monthly electricity consumption per kVA is divided by the contract transformer capacity of all metering points to which the user belongs.

4. The electricity price of industrial and commercial users consists of the on-grid electricity price, the line loss expenses of the on-grid link, the transmission and distribution price, the system operation expenses, the government funds and surcharges.

System operating costs include auxiliary service costs, pumped storage capacity electricity costs, etc.

The line loss cost of the online access link is calculated based on the actual power purchase price and the comprehensive line loss rate. Where the power market does not support users' direct purchase of power loss, power grid companies will continue to be responsible for purchasing power loss, and the procurement profit and loss agent will be distributed or shared with all industrial and commercial users on a monthly basis.

5. The electricity used for residents' daily and agricultural production will continue to implement the current catalog sales electricity price policy.

6. Provincial price authorities should carefully organize and make careful arrangements to ensure the smooth implementation of transmission and distribution prices, coordinate with power grid enterprises' agency power purchase system, closely monitor the implementation of transmission and distribution prices, and report problems to our commission (Price Department) in a timely manner. Power grid enterprises should strictly implement the transmission and distribution prices approved in this notice in accordance with relevant requirements, and coordinate the promotion of balanced development of the power grid; conduct statistical collection of basic data related to transmission and distribution prices, such as assets, expenses, income, transmission and distribution volume, load, user reporting capacity, line loss rate, investment plan completion progress, etc., and report it to our commission (Price Department) and provincial price competent departments before the end of May each year.

This notice will be implemented from June 1, 2023. If the relevant provisions of the current policies do not conform to this notice, the provisions of this notice shall prevail.