The adjustment of value-added tax rate in the power industry will correspondingly reduce the general industrial and commercial electricity prices

Recently, the National Development and Reform Commission will officially issue a document to reduce the value-added tax rate by 1 percentage point, implement a policy of deferred tax refund for power grid enterprises, and further reduce the general industrial and commercial electricity price, involving a reduction of about 21.6 billion yuan, which can reduce the general industrial and commercial electricity price by 2.16 cents per kilowatt hour. This policy will be implemented from May 1st. So far, the cumulative decrease is about 7%.

Previously, the Government Work Report pointed out that it is necessary to significantly reduce the non tax burden on enterprises, lower the fees and transmission and distribution prices in the power grid, and reduce the average electricity price for general industrial and commercial sectors by 10%.

In response, the National Development and Reform Commission urged power grid enterprises to organize the refund of temporary electricity charges already collected from power users, and to reduce policy cross subsidies and system reserve fees for waste heat, residual pressure, and residual gas self owned power plants. Promote the reform of transmission prices for regional power grids and cross provincial and cross regional special projects. Further standardize and reduce grid fees, and temporarily lower transmission and distribution electricity prices. Reduce the proportion of newly approved planned investment in power transmission and distribution by provincial power grid enterprises for depreciation provision from an average of 75% to 70%, thereby reducing pricing costs for this regulatory period and correspondingly lowering power transmission and distribution prices.