Key focus of electricity regulation in the second half of the year to promote both good and rapid development

Promote good and rapid development of electricity

At the recently held National Electricity Regulatory Commission Cadre Conference, the newly appointed Chairman of the Electricity Regulatory Commission, Wu Xinxiong, made a comprehensive deployment of the current key work of electricity regulation after intensive research and careful consideration. He particularly emphasized the need to have more firm confidence, more effective measures, and a more pragmatic style, to work hard, forge ahead, and strive to create a new situation in power regulation.

Real hard work, what should we focus on? What are you doing? One specific requirement put forward by Chairman Wu Xinxiong in his speech is to adhere to the principles of "in accordance with laws and regulations, timely and accurate, standardized and orderly, and fair", and highlight the work of power safety supervision, power market supervision, energy conservation and emission reduction supervision, and administrative law enforcement. He demanded that the power regulatory team "conscientiously fulfill their responsibilities, effectively improve the level of power regulatory work, and promote the healthy and rapid development of the power industry." From the "Key Regulatory Work Plan for the Second Half of 2011" issued shortly before the power regulatory meeting, we can clearly see the implementation and embodiment of the above requirements. Whether it is emphasizing fair, just and open market supervision, highlighting green and efficient energy conservation and emission reduction supervision, or safety supervision, all point to a common goal - the rapid and sound development of the power industry.

　　Market order supervision

Implementation time of cross provincial (regional) electricity trading supervision: September to December 2011.

Regulatory scope: Provincial level and above power grid enterprises and related power generation enterprises.

This regulatory content is to supervise whether the cross provincial (regional) electricity trading organized by power grid enterprises promotes resource optimization allocation, alleviates the contradiction between electricity supply and demand, whether the collection of network fees and losses is standardized and reasonable, and whether it infringes on the interests of relevant market entities. The purpose is to promote optimal allocation of resources, regulate market behavior, and protect the legitimate rights and interests of market entities.

Implementation time of power grid dispatching supervision: the second half of 2011.

Regulatory scope: Select several regional and provincial power dispatching agencies.

This regulatory content includes the introduction of regulations for power dispatching supervision and the submission and disclosure of information by power dispatching agencies, forming a regulatory report on power dispatching information submission and disclosure; Track the pilot work of evaluating power dispatch supervision indicators, carry out pilot evaluations, and then revise and improve the "Three Public" Dispatch Supervision Indicators. The purpose is to establish and improve regulatory norms and mechanisms, carry out pilot evaluations of power dispatch regulatory indicators, and test the pertinence, effectiveness, and operability of regulatory mechanisms in practice. The ultimate goal is to maximize the overall efficiency of China's power supply and grid while ensuring the safety of power supply.

The implementation time of rectification and supervision of power supply issues was launched in October 2011.

Regulatory scope: All power supply enterprises across the country.

This regulatory content is to effectively supervise the implementation of rectification measures for the problems discovered during the 2011 power supply inspection and the problems discovered by power supply enterprises in the self-examination and self correction process. The purpose is to require enterprises identified during the 2011 power supply inspection to promptly develop rectification plans and measures, effectively implement rectification, improve the power supply capacity, quality, and service level of power supply enterprises, and further standardize power supply market behavior and cost accounting.

　　Special inspection on orderly electricity use

Implementation time: July to August 2011.

Regulatory scope: Arrange relevant dispatched agencies to carry out orderly self inspection of electricity use, and form inspection teams to conduct inspections in provinces (cities, districts) with severe power shortages such as Guangdong, Jiangsu, Hunan, and Zhejiang.

This regulatory content includes the establishment of orderly power consumption organizational structures for power grid enterprises and the preparation of orderly power consumption plans in various regions; Whether the power grid enterprise strictly implements the approved orderly power consumption plan, the "Power Supply Capacity Limitation Sequence Table for Overgrid", and the "Emergency Route Sequence Table"; The problems and difficulties in implementing orderly electricity use. The purpose is to actively respond to the current supply and demand situation of electricity, optimize the structure of electricity consumption, improve the efficiency of electricity utilization, ensure the electricity supply for residents' daily lives, and effectively guarantee the smooth and normal operation of the social economy.

Implementation time of the "Three" Special Governance and Supervision of Power Supply Enterprise User Receiving Projects: November 2011.

Regulatory scope: Power supply enterprises at all levels nationwide, affiliated design, construction, equipment and material supply units, etc.

This regulatory content is to conduct self-examination, self correction, supervision and investigation of the behavior of design, construction and equipment material supply units of direct, indirect or disguised user power receiving projects in power supply enterprises. The purpose is to solve prominent problems in power supply enterprises, promote continuous improvement and enhancement of service levels, and safeguard the legitimate rights and interests of power users and consumers.

　　financial supervision

Implementation time of financial cost monitoring and early warning (pilot) for power generation enterprises: August to November 2011.

Regulatory scope: It is proposed to select several groups and their affiliated power plants.

This regulatory content involves selecting representative power generation groups for key investigation, grasping the financial and operational status of power generation enterprises, identifying internal and external factors that affect the financial and cost levels of power generation enterprises, analyzing prominent problems, including rising coal prices, blind expansion, high debt ratios, declining power generation hours, and inability of units to connect to the grid for power generation, and proposing regulatory opinions and policy recommendations. The purpose is to monitor the financial and operational situation of power generation enterprises, with a focus on analyzing the impact of cost changes on their business development, identifying existing problems, and laying the foundation for next year's financial and operational warning monitoring centered on power generation costs.

Supervision and Administration of Power Engineering Cost: April 2011 to January 2012.

Regulatory scope: Relevant power companies.

This regulatory content is to collect and analyze cost information of power engineering projects put into operation from 2009 to 2010 and during the 11th Five Year Plan period, mainly including thermal power projects with a single unit capacity of 12 megawatts or more put into operation; Hydroelectric projects with a capacity of 10 megawatts or more per unit (including pumped storage); All wind power projects; All nuclear power projects; 110 kV and above power transmission and transformation projects.

The purpose is to strengthen the supervision of power engineering costs, increase the transparency of power engineering costs and equipment and material prices, and lay the foundation for further improving the level of engineering cost supervision and exploring investment efficiency supervision work.

　　Energy conservation and emission reduction supervision

The regulatory implementation period for power generation rights trading was from September to December 2011.

Regulatory scope: Provincial level and above power grid enterprises and related power generation enterprises.

This regulatory content is to supervise whether the trading of power generation rights promotes energy conservation and emission reduction, complies with national industrial policies, and is conducive to improving the overall efficiency of power generation. The purpose is to promote energy conservation and emission reduction, optimize the allocation of power generation resources, and regulate market behavior.

The regulatory implementation time for the full guarantee purchase of renewable energy electricity is the second half of 2011.

Regulatory scope: State Grid Corporation of China, China Southern Power Grid Corporation, local power grid companies, and renewable energy generation enterprises.

This regulatory content is to implement supervision on the priority scheduling and full acquisition of renewable energy grid connected power generation projects within the coverage area of the power grid by power grid enterprises. The purpose is to implement the Renewable Energy Law, safeguard the legitimate rights and interests of power enterprises, and promote the scientific development of the renewable energy power industry.

　　Electricity safety supervision

Implementation time of wind power grid connection safety supervision: the second half of 2011.

Regulatory scope: National wind power enterprises, relevant power grid enterprises, and power dispatching agencies.

This regulation covers the investigation and management of safety hazards in wind power enterprises; Notice on Strengthening the Safety Supervision and Management of Wind Turbine Units and Containing Large scale Wind Turbine Unit Off grid Accidents issued by the China Electricity Regulatory Commission, as well as the implementation of various safety measures; Safety evaluation of wind farm grid connection. The purpose is to curb the recurrence of large-scale off grid accidents of wind turbines, ensure the safe and stable operation of the power system, and ensure the safe operation of wind turbines.

The implementation time of electricity regulation for the 26th Summer Universiade is before August 2011. Carry out a special inspection of electricity protection work in July.

Regulatory scope: Relevant power companies in the southern region.

This regulatory content is about the implementation of the "Regulations on Power Safety Guarantee for Major Events"; Notice on Effectively Ensuring Power Safety for the 26th Summer Universiade issued by the Electricity Regulatory Commission, as well as the implementation of various power protection measures. The purpose is to ensure reliable power supply to important users and venues during the Universiade, and to ensure the safe and stable operation of the power system.

The implementation time of the pilot project for the security level protection supervision of important information systems in the power industry is from August to November 2011.

Regulatory scope: State Grid Corporation of China, China Southern Power Grid Corporation, China Huaneng Group Corporation, China Datang Corporation, China Huadian Corporation, China State Grid Corporation, China Power Investment Corporation, and China Guangdong Nuclear Power Group Corporation.

This regulatory content is to supervise the grading and filing, grading evaluation, and security construction rectification work of important power information systems at or above the third level. The purpose is to implement the national information system security level protection system, improve the security protection level of important information systems, ensure the safe and stable operation of the power system, and prevent large-scale power outages caused by network and information security incidents.

　　Market access and administrative law enforcement work

The comprehensive evaluation and supervision of compliance with the administrative licensing system by power generation enterprises (pilot) will be implemented in the second half of 2011.

Regulatory scope: Select some power generation enterprises from two provinces as pilot projects for comprehensive evaluation.

This regulatory content is to establish a scientific indicator evaluation system, regularly evaluate the compliance of licensed enterprises with the licensing system, classify and supervise based on the evaluation results, in order to improve the consciousness of licensed enterprises to comply with the regulatory system and strengthen the implementation effect of the regulatory system. The purpose is to establish a regular regulatory mechanism for administrative licensing, effectively strengthen the follow-up supervision of licensed enterprises, and urge enterprises to consciously comply with regulatory systems such as power business licenses.