Through a series of direct price reduction measures, the cost of electricity for enterprises has been reduced by more than 210 billion yuan in two years. In the first half of this year, the market-based transaction volume of electricity in the first half of this year exceeded the size of last year, which further widened the price reduction. In the second half of the year, the electricity reform will usher in a new round of climax, and the corresponding dividend will accelerate the release.

However, it is worth noting that the decline in electricity prices means pressure on the grid, coal-fired power and new energy companies. Industry experts believe that it is necessary to pay close attention to the recent bankruptcy liquidation of thermal power plants, and it is recommended to do a good job of price formation mechanism, medium and long-term contract price of electricity coal and performance supervision, and new energy subsidy.

Reduce the cost of electricity for enterprises by 210 billion yuan in two years

Since July 1 this year, the second batch of power price reduction measures organized and implemented by the National Development and Reform Commission officially began. "In addition to the first batch of price reduction measures implemented on April 1, the two batches of measures have reduced the cost of electricity for enterprises. We have calculated that it is 84.6 billion yuan, of which the cost of electricity for general industrial and commercial enterprises is 81 billion yuan. The “Government Work Report” proposed the task of “reducing the average electricity price of general industry and commerce by another 10%”,” said Meng Hao, deputy director and spokesperson of the Policy Research Office of the National Development and Reform Commission.

The 2019 government work report proposes to reduce the fees charged by enterprises with reforms. We will deepen the reform of power marketization, clean up the additional charges for electricity prices, and reduce the cost of electricity used in manufacturing. The average electricity price of industrial and commercial enterprises will be reduced by 10%. This is after the 2018 proposal that “the average industrial and commercial electricity price is reduced by 10% on average”, the government work report once again proposes a quantitative indicator to reduce the burden of electricity consumption of enterprises.

According to Sun Chuanwang, an associate professor at the School of Economics of Xiamen University, according to the 2015 input-output table, the cost of electricity is 2.8% of the total production cost of the enterprise. However, different industries have large differences. In the mining, chemical, metal smelting and other industries, the cost of electricity is between 4% and 9%. In general industrial and commercial users, the cost of electricity prices is mostly below 1.5%. Among household consumption expenditures, the proportion of electricity costs is around 1.3%. The decline in electricity prices is generally beneficial to stimulate investment.

According to data released by the China Electricity Council (hereinafter referred to as “CEC”), in 2018, China's power companies actively implemented the reduction of general industrial and commercial electricity price requirements. The national total of four batches reduced the cost of electricity for users by 125.79 billion yuan. The electricity per kWh was reduced by 7.9 cents, a drop of 10.1%.

"The company pays less than 125.79 billion yuan of electricity, and about 75% is the responsibility of the power grid enterprises, and 25% is the government's commitment." Xue Jing, deputy director of the Industry Development and Environmental Resources Department of China Electricity Industry, said.

The "China Power Industry Annual Development Report 2019" issued by China Electricity Council, after the power grid enterprises made profits to the power companies, the total profit in 2018 decreased by 24.3% compared with the previous year. The power generation enterprises were affected by the low base of the previous year and the rapid growth of power generation. In 2018, the total profit reached 221 billion yuan, an increase of 23.8% over the previous year.

Among them, thermal power generation enterprises realized a profit of 32.3 billion yuan in 2018, but the loss is still as high as 43.8%; wind power, photovoltaic power generation and nuclear power profit growth rate are more than 20%, but due to wind power and photoelectric subsidies failed to be timely, the company's book profits are short-term It is difficult to convert into actual capital flow, and there are still difficulties in capital turnover.

Electricity market trading volume surged to release dividends

In addition to direct measures such as reducing electricity price surcharges, the National Development and Reform Commission also encourages the active expansion of the scale of participation of general industrial and commercial users in power marketization transactions, and further reduces the cost of electricity through market mechanisms.

Statistics from the Southern Power Grid Guangdong Company show that in the first half of this year, the scale of the Guangdong power market has gradually expanded, and the number of Guangdong power market entities has exceeded 10,000, with a total of 10,899. The trading volume of the electricity market also increased rapidly. In the first half of the year, the accumulated trading volume reached 165.82 billion kWh, a year-on-year increase of 25.4%. Compared with the total transaction volume in 2018, the cost of saving electricity for users was about 7 billion yuan.

Xinjiang has a similar situation in the energy region. In the first half of the year, the marketized trading power in Xinjiang totaled 55.675 billion kWh, which has exceeded the size of last year. Among the 55.675 billion kWh, large users directly traded 44.782 billion kWh of electricity, coal-fired units shut down the alternative transaction of 5.318 billion kWh, new energy replaced the self-sufficient power plant transaction 4.775 billion kWh, and electric heating transaction 900 million kWh.

According to estimates, benefiting from direct transactions by large users, the electricity consumption of related enterprises can be reduced by about 0.1 yuan / kWh. Xinjiang innovatively bundled new energy and thermal power for direct transactions by large users, further reducing electricity prices.

Guangxi also regards green clean and environmental protection as the core of the “supply and demand docking” of energy and power transactions, and actively expands and eliminates the clean energy space. Deng Haitao, director of the marketing department of Guangxi Branch of China Datang Group Co., Ltd., said: "Datang Group's hydropower installed capacity in Guangxi is 9.17 million kilowatts, accounting for half of the hydropower installed capacity of the whole autonomous region. After entering the trading platform, it can directly connect with enterprises and successfully solved it. Hydropower 'peak and valley' dilemma and 'abandon water' problem."

From January to June 2019, through the market to absorb nuclear power exceeding 10 billion kWh, the consumption of surplus hydropower was 3.127 billion kWh, which guaranteed the realization of “zero water abandonment” in the first half of Guangxi.

As of the first half of this year, the trading volume of Guangxi Electric Power Trading Center has doubled for four consecutive years, and the market-trading power has exceeded 170 billion kWh, and the annual turnover has exceeded 60 billion kWh, a record high; the transaction frequency has doubled year by year, and 144 batches of transactions have been organized; The proportion of market-based electricity consumption in the main grid sales increased from 14.1% in 2016 to 41.3% in 2018, ranking the top in the country. Accumulated costs for enterprises to reduce electricity costs more than 15 billion yuan.

Electric power is fully accelerated to welcome a new round of climax

The surge in the scale of electricity market trading is a microcosm of this year's caller's comprehensive acceleration. It is expected that a new round of climax will be ushered in the second half of the year, and the corresponding dividend will also be released.

At the end of June this year, the National Development and Reform Commission's "Notice on Comprehensively Opening the Power Generation Plan for Operating Power Users" clarified that the power generation plans for operational power users were all liberalized in principle, and the degree of marketization of power transactions was improved. Except for electricity users in the industries such as residents, agriculture, important public utilities, and public welfare services, as well as plant power and line losses necessary for power production and supply, other power users are operating power users.

As an important part of the new round of power reform "opening the two ends", the power generation plan will be liberalized and gradually expanded. In March 2017, it proposed "reducing the planned electricity consumption of existing coal-fired power generation enterprises year by year", which was proposed in July 2018. The comprehensive liberalization of electricity consumption plans for users in the four major industries of coal, steel, nonferrous metals and building materials has taken a crucial step.

According to the National Gold Securities Research Report, the full liberalization of the power generation plan for operating power users is expected to bring about 200 billion to 300 billion kWh market-based transaction increases this year.

At the same time, the National Development and Reform Commission also approved the fourth batch of 84 incremental power distribution projects, and the pilot implementation extended to the county. In addition, the first batch of 8 pilot projects for the power spot market have all started the simulation test operation, and the joint-stock reform of several power trading institutions is advancing.

Sun Chuanwang believes that one difficulty in the current stage of power reform is to build an effective power spot market. Another difficulty lies in improving the retail market. In the case of grid companies participating, many other retail companies have no market advantage in real competition, and it is difficult to survive or even face bankruptcy. The future reform direction can focus on the binding and integration of the power sales side and integrated energy services, which will effectively open a new market path and reduce the user's electricity price level.

The China Electricity Council proposes that, on the basis of implementing the 2019 general industrial and commercial average electricity price and then reducing the average electricity price by 10%, it will continue to clean up the unreasonable price increase in the standard-to-power supply link, ensuring that the electricity price reduction will benefit the end users and realize the cost reduction and efficiency increase of the power companies. At the same time, it is reasonable to verify the transmission and distribution price level of the second supervision cycle, establish and improve the transmission and distribution price mechanism to ensure the sustainable development of the power grid, and comprehensively solve the problems of power grid investment and construction, electricity price cross subsidy, and assistance from the east and the west, and support the healthy and sustainable development of the power grid.

Facing the difficulties in the operation of coal-fired power companies, the China Electricity Council proposes to strengthen the medium- and long-term contract supervision of thermal coal to ensure compliance, improve the price terms, and clarify the annual long-term agreement price mechanism. It is strictly forbidden to use the long-term contract and the long-term long-term contract. Price; maintain the continuity of imported coal policy, guide the market to reasonable expectations, control the price of coal in a reasonable range, alleviate the dilemma of coal-fired power enterprises. In addition, as soon as possible, we will promote the adjustment and price range of the tax-included benchmark price of the coal-fired medium-long contract, coordinate the coal producers to adjust the price of coal, and promote the effective reduction of tax-deductible dividends to end users.

The China Electricity Council also recommended that the renewable energy subsidy catalogue announcement and subsidy fund release be accelerated as agreed, the huge arrears should be resolved as soon as possible, the business operation and financial pressures should be alleviated, and the financing types for clean energy projects such as wind power and photovoltaics should be developed. The model is included in the scope of loan lending support to solve the subsidy fund gap of the whole industry; implement a green credit policy to promote the development of clean energy such as renewable energy.