Research on the Current Issues on Power Price Policy and Mechanism

Currently, China has initially built up a power sector price system and regulatory framework with Chinese characteristics, providing strong support for the healthy development and market construction. However, several issues arose in power enterprise operation as well as power market development practice, such as the relatively weak top-level design mechanism in power price management, financial difficulties faced by electric power enterprises caused by forced price reduction, renewable electricity price as well as subsidy mechanisms that need to be straightened out. Hence, CEC gathered efforts to investigate and research on power price related issues. The research not only investigated the implementation of current tariff mechanism and its impact to power enterprises, but also probed into the problems that electric enterprises met in implementing related tariff policies. Policy proposals and recommendations were put forward in the research, such as strengthening top-level design of tariff mechanism, straightening out renewable tariffs and subsidy, and improve compensation mechanism for ancillary services, etc., which provide useful reference for government to push forward the reform of power price.