“effective market + efficient administration”, with
the focus on building the market, enhancing
market regulation, maintaining market order,
ensuring fair competition, mobilising and motivating market participants and shaping a modern
energy market system.
(2) Access criteria
While loosening the restrictions on market
access, China will introduce substantive standards for safety, the environment and energy
efficiency. China will also transform and modernise the energy mix to alleviate the harmful
effects of energy production and consumption on
the environment and release the benefits of
reform as much as possible.
(3) Energy security
Given the fact that it is a large energy consumer
and importer, China will maintain its energy
security by integrating international and local
markets, sharing international resources, competing globally and playing an active role in
global energy governance.
(4) Public benefits
China will carry out its transformation of the
energy system with a well-coordinated package
of goals and with the aim of providing clear
economic and social benefits—including providing the public with clean, affordable and
high-quality energy and ensuring a reliable
energy supply.
4.3.3 Strategic Goals
(1) Market system perfection
China will create an open and modern energy
market system, underpinned by comprehensive
legislation and orderly competition. A market
competition landscape—where huge energy
companies act as the backbone and a diversified
mix of energy production, transmission and sales
companies of different legal statuses and sizes
coexist—will effectively address concerns about
inequality among market participants, market
segmentation and disorderly competition.
(2) Pricing mechanism perfection
Prices in competitive segments will be decided
by the market. Prices in natural monopoly segments will largely be supervised and regulated by
the government. Together, these will create a
pricing mechanism and fiscal and taxation system that accurately reflect the supply-demand
relationship, resource scarcity and environmental
impact, and address concerns about unfair price
policies and pricing mechanisms.
(3) Government administration improvement
The boundary between government and market
will be clarified and an industry strategy, overall
plan, regulations and standards, and high-level
energy administration bodies for energy reserves
and emergency response will be created. Following the tenet that “Things prohibited by laws
cannot be done, things not prohibited by laws can
be done, and duties enforced by laws must be
performed” will address the challenges caused by
the absence of unified and independent
high-level energy administration bodies.
(4) Effective market regulation
Unified, independent and professional market
regulators will be set up to form a modern energy
regulatory system. The new system will have a
clearly defined responsibility matrix, and will
pursue fairness and equality, transparency and
efficiency, and effective regulation, thereby
addressing problems such as the bundling of
administration and regulation, decentralised or
missing regulatory functions and poorly enforced
regulations.
(5) Complete legislative system
A complete, well-structured, well-aligned and
unified system of energy law will be created,
with associated regulations, standards and laws
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S. Yaodong and A. Gillespie
the focus on building the market, enhancing
market regulation, maintaining market order,
ensuring fair competition, mobilising and motivating market participants and shaping a modern
energy market system.
(2) Access criteria
While loosening the restrictions on market
access, China will introduce substantive standards for safety, the environment and energy
efficiency. China will also transform and modernise the energy mix to alleviate the harmful
effects of energy production and consumption on
the environment and release the benefits of
reform as much as possible.
(3) Energy security
Given the fact that it is a large energy consumer
and importer, China will maintain its energy
security by integrating international and local
markets, sharing international resources, competing globally and playing an active role in
global energy governance.
(4) Public benefits
China will carry out its transformation of the
energy system with a well-coordinated package
of goals and with the aim of providing clear
economic and social benefits—including providing the public with clean, affordable and
high-quality energy and ensuring a reliable
energy supply.
4.3.3 Strategic Goals
(1) Market system perfection
China will create an open and modern energy
market system, underpinned by comprehensive
legislation and orderly competition. A market
competition landscape—where huge energy
companies act as the backbone and a diversified
mix of energy production, transmission and sales
companies of different legal statuses and sizes
coexist—will effectively address concerns about
inequality among market participants, market
segmentation and disorderly competition.
(2) Pricing mechanism perfection
Prices in competitive segments will be decided
by the market. Prices in natural monopoly segments will largely be supervised and regulated by
the government. Together, these will create a
pricing mechanism and fiscal and taxation system that accurately reflect the supply-demand
relationship, resource scarcity and environmental
impact, and address concerns about unfair price
policies and pricing mechanisms.
(3) Government administration improvement
The boundary between government and market
will be clarified and an industry strategy, overall
plan, regulations and standards, and high-level
energy administration bodies for energy reserves
and emergency response will be created. Following the tenet that “Things prohibited by laws
cannot be done, things not prohibited by laws can
be done, and duties enforced by laws must be
performed” will address the challenges caused by
the absence of unified and independent
high-level energy administration bodies.
(4) Effective market regulation
Unified, independent and professional market
regulators will be set up to form a modern energy
regulatory system. The new system will have a
clearly defined responsibility matrix, and will
pursue fairness and equality, transparency and
efficiency, and effective regulation, thereby
addressing problems such as the bundling of
administration and regulation, decentralised or
missing regulatory functions and poorly enforced
regulations.
(5) Complete legislative system
A complete, well-structured, well-aligned and
unified system of energy law will be created,
with associated regulations, standards and laws
452
S. Yaodong and A. Gillespie