change government functions, improve the
regulatory system and build a scientifically
based price mechanism.
The path arrived at in this section of the report
is based largely on the second approach but
incorporates some of the principles of the first
approach.
7.4.3 Targets and Tasks of the New
Round of Power System
Reform
The ZhongFa No. 9 Document of 2015 marks the
launch of the new round of power system reform.
It defines the targets and tasks of reform in the
light of the difficulties faced in building market
mechanisms for China’s power industry.
According to the document, the targets and
tasks of the new round of reform are as follows.
The objective of reform is to make power a
commodity by building a power industry market
mechanism, developing a rational pricing mechanism, deregulating competitive segments in an
orderly manner, diversifying suppliers, controlling energy consumption, enhancing energy
efficiency, improving safety and reliability,
ensuring fair competition, and protecting the
environment.
The main tasks of reform are “three deregulations, one facilitation and three improvements”.
These are: deregulate (in an orderly manner)
pricing in competition-based fields, except
transmission and distribution; open distribution
and sales to private capital in an orderly manner;
lift control over power generation in an orderly
manner, except peak-shaving; make power
exchanges relatively independent; strengthen
government regulations; improve power planning; and make power supply safe, efficient and
reliable (Fig. 25).
Generally, the three deregulations, one facilitation and three improvements are all related to
building power market mechanisms. The purpose
of deregulating price in competition-based fields
is to build the market price mechanism. The
purpose of lifting control of sales and power
generation is to build a market competition
mechanism for generation and sales. The purpose
of making power exchanges independent is to
equip the market with fair and efficient trading
Fig. 25 Targets and tasks of the new round of power system reform
Special Report 4: China’s Energy System Revolution
503
regulatory system and build a scientifically
based price mechanism.
The path arrived at in this section of the report
is based largely on the second approach but
incorporates some of the principles of the first
approach.
7.4.3 Targets and Tasks of the New
Round of Power System
Reform
The ZhongFa No. 9 Document of 2015 marks the
launch of the new round of power system reform.
It defines the targets and tasks of reform in the
light of the difficulties faced in building market
mechanisms for China’s power industry.
According to the document, the targets and
tasks of the new round of reform are as follows.
The objective of reform is to make power a
commodity by building a power industry market
mechanism, developing a rational pricing mechanism, deregulating competitive segments in an
orderly manner, diversifying suppliers, controlling energy consumption, enhancing energy
efficiency, improving safety and reliability,
ensuring fair competition, and protecting the
environment.
The main tasks of reform are “three deregulations, one facilitation and three improvements”.
These are: deregulate (in an orderly manner)
pricing in competition-based fields, except
transmission and distribution; open distribution
and sales to private capital in an orderly manner;
lift control over power generation in an orderly
manner, except peak-shaving; make power
exchanges relatively independent; strengthen
government regulations; improve power planning; and make power supply safe, efficient and
reliable (Fig. 25).
Generally, the three deregulations, one facilitation and three improvements are all related to
building power market mechanisms. The purpose
of deregulating price in competition-based fields
is to build the market price mechanism. The
purpose of lifting control of sales and power
generation is to build a market competition
mechanism for generation and sales. The purpose
of making power exchanges independent is to
equip the market with fair and efficient trading
Fig. 25 Targets and tasks of the new round of power system reform
Special Report 4: China’s Energy System Revolution
503