"Oolong" news detonated electric reform

On the 18th of this month, a “New Electricity Reform Program has been reported to the State Council, and the State Grid has retreated to the power supply side”. However, at 4:19 pm on March 19, National Grid, one of the protagonists of the news, was on its official website. According to a news release on Weibo, “The media report that the new power reform program has been reported to the State Council is not true.”

Although the national grid quickly uttered sounds, but driven by this news, in the two days of March 18 and 19, the power stocks plate more than a single daily limit.

One message spurred the sensitive nerves of the capital market. From one side, it shows that the strong expectations of the capital market for electric reform and the importance of electric reform to the entire electric power industry.

The approved electricity price is still the main task. The concept of electricity reform on March 18 ushered in the "day tour" market. Under the catalysis of the “new energy reform program led by the Energy Bureau has been submitted to the State Council”, the concept of electricity reform has reached a direct daily limit for the energy saving of the stock market, and Huaxi Energy rose 2.71%. Energy, Jidian Power, Changyuan Power also rose by nearly 2%.

According to industry insiders, this may indicate that the market is referring to the statement that “the gradual withdrawal of electricity from the power grid and the direct purchase of large-scale users by the grid as the main line and the financial and dispatching of the grid are optional”. It is quite concerned and its feasibility is also highly appreciated.

In the clarification of the official microblog of the State Grid, only responding said that the program was not reported to the State Council, but did not directly deny the content of the program. It is worth noting that the reference to “the independence of finance and dispatch of the power grid” has never been mentioned in the electrical reform program that was previously exposed.

Is it possible for grid finance and dispatch to be independent?

Electric power dispatching is an effective management method used to ensure the safe and stable operation of the power grid, reliable external power supply, and various types of power production work.

“At the beginning when discussing the new plan for electric reform, it was indeed discussed whether or not the dispatch center or the trading center should be independent. The dispatch center is mainly responsible for the real-time balancing of power dispatch, and the trading center is mainly responsible for annual or monthly electricity trading. China is more inclined to become an independent trading center,” said Professor Zhang Ge, assistant to the president of North China Electric Power University. “It is also not realistic to separate the finance department. The most likely is the separate financial accounting, separating the cost of the transmission company from the distribution company. Set up an independent transmission and distribution tariff."

Zhang Yan told the author that the experts involved in the new electric power reform program stated that it is no longer possible to split the power grid and separate the transmission and distribution. In other words, the transmission companies and distribution companies are no longer able to separate themselves from the grid companies. Obviously, the current general direction will still be approved independent transmission and distribution prices.