Table 15 Administrative measures for deregulating power distribution networks in an orderly manner
Main content
Main requirements
Planning guidance
Include incremental power distribution network projects with the power
distribution network plans developed by local power authorities
Incremental power distribution networks need to be finalised in provincial
plans to ensure that incremental power distribution networks are consistent
with national power development strategies and industrial policies and meet
market participant transmission requirements
Competition and openness
Encourage private capital to actively take part in incremental power
distribution. Determine investors through market competition
Rights and responsibilities
Private capital investing in an incremental power distribution network is
responsible for its operation and management. Investors should follow national
technical specifications and standards, fulfil their obligations on safe and
reliable electricity supply, minimum supply and social services, while
obtaining a reasonable return on investment
Scope of activities in the power
distribution network
Invest in, construct and operate incremental power distribution networks that
meet transmission demand and planning requirements, and expand power
distribution networks through mixed ownership
Companies that control existing assets in power distribution networks,
including high-tech industrial parks, economic and technological development
zones, local power grids and bulk sale counties, could apply to local power
authorities for the right to invest in and operate power distribution networks
Operation of power distribution
networks
Private capital that invests in and controls the incremental power distribution
network has the right to operate the network. Those companies that meet the
access conditions for power sales companies may carry out power sales
activities
Those grid companies with an incremental power distribution network have
the right to operate the network. Only power distribution activities can be
carried out in power distribution areas. The grid company’s competitive power
sales business should be gradually shifted to an independent power sales
company
Power producers are not allowed to invest in or build dedicated lines through
which power plants supply power directly to users or that connect the plants to
the incremental power distribution network they invest in
Table 16 Power traded through bidding in Guangdong, up to March 9, 2016
Trading volume (GWh)
Share of power sold by
power sales companies (%)
Discount granted by power producers
(li (one thousandth of a yuan)/kWh)
1st trade
1,050
64.85
125.55
2nd trade
1,450
68.68
147.93
3rd trade
1,400
82.92
133.28
4th trade
1,870
62.07
93.90
5th trade
2,660
75.50
58.87
6th trade
3,550
75.86
43.38
7th trade
4,000
75.00
37.42
512
S. Yaodong and A. Gillespie
Main content
Main requirements
Planning guidance
Include incremental power distribution network projects with the power
distribution network plans developed by local power authorities
Incremental power distribution networks need to be finalised in provincial
plans to ensure that incremental power distribution networks are consistent
with national power development strategies and industrial policies and meet
market participant transmission requirements
Competition and openness
Encourage private capital to actively take part in incremental power
distribution. Determine investors through market competition
Rights and responsibilities
Private capital investing in an incremental power distribution network is
responsible for its operation and management. Investors should follow national
technical specifications and standards, fulfil their obligations on safe and
reliable electricity supply, minimum supply and social services, while
obtaining a reasonable return on investment
Scope of activities in the power
distribution network
Invest in, construct and operate incremental power distribution networks that
meet transmission demand and planning requirements, and expand power
distribution networks through mixed ownership
Companies that control existing assets in power distribution networks,
including high-tech industrial parks, economic and technological development
zones, local power grids and bulk sale counties, could apply to local power
authorities for the right to invest in and operate power distribution networks
Operation of power distribution
networks
Private capital that invests in and controls the incremental power distribution
network has the right to operate the network. Those companies that meet the
access conditions for power sales companies may carry out power sales
activities
Those grid companies with an incremental power distribution network have
the right to operate the network. Only power distribution activities can be
carried out in power distribution areas. The grid company’s competitive power
sales business should be gradually shifted to an independent power sales
company
Power producers are not allowed to invest in or build dedicated lines through
which power plants supply power directly to users or that connect the plants to
the incremental power distribution network they invest in
Table 16 Power traded through bidding in Guangdong, up to March 9, 2016
Trading volume (GWh)
Share of power sold by
power sales companies (%)
Discount granted by power producers
(li (one thousandth of a yuan)/kWh)
1st trade
1,050
64.85
125.55
2nd trade
1,450
68.68
147.93
3rd trade
1,400
82.92
133.28
4th trade
1,870
62.07
93.90
5th trade
2,660
75.50
58.87
6th trade
3,550
75.86
43.38
7th trade
4,000
75.00
37.42
512
S. Yaodong and A. Gillespie