Development and Reform Commission Makes Efforts to Promote the Reform of Resource Product Prices and Environmental Protection Charges

The responsible person of the National Development and Reform Commission recently stated that the reform of resource product prices and environmental protection charges is the highlight of this year's reform work. In the first half of the year, the relevant departments actively promote water, electricity, refined oil and other important energy sources in accordance with the arrangements of the Party Central Committee and the State Council. At the same time as the reform of resource prices, we must do a good job in ensuring the livelihood of the hard-to-find groups and make this reform, which is closely related to the lives of the people, proceed in an orderly manner.
The person in charge said that advancing the reform of resource product prices and environmental protection charges is not only an objective requirement for improving the socialist market economic system and improving the efficiency of resource allocation, but also an urgent requirement for promoting energy conservation and emission reduction and promoting the transformation of China's economic development methods.
Water price reform is conducive to resource conservation and environmental protection The relevant responsible person of the National Development and Reform Commission stated that at present, there are still problems such as the low standard of collection, the narrow scope of collection, and other issues in China's urban water supply prices, sewage treatment fees, and water resources fees, which are not conducive to the promotion of resources. The use of savings. In response to this situation, cities such as Tianjin, Shanghai, Nanjing, Guangzhou, Lanzhou, and Yinchuan have adjusted water prices this year, and cities such as Shenyang, Xining and Luoyang have held hearings to adjust water prices.
According to the relevant person in charge of the National Development and Reform Commission, although there are different reasons for price adjustment, some are to solve the problem of low sewage treatment fees, some to ease the loss of production and operation of water supply companies, and some are to raise funds for water conservancy projects such as the South-to-North Water Transfer Project. However, these measures are in line with the reform direction and are conducive to promoting the conservation of resources and environmental protection. Since the water price reform is related to millions of households, the National Development and Reform Commission and the Ministry of Housing and Urban-Rural Development jointly issued a circular to explicitly require all localities to take into consideration the development needs of the water supply and sewage treatment industry and the social sustainability in the process of adjusting the water price. Grasping the intensity and timing of water price adjustments to prevent the centralized introduction of price adjustment items. Areas where the contradiction between water prices is relatively large must be co-ordinated and put in place. It also requires all localities to strictly implement cost supervision, review and hearing procedures, strengthen the review of the cost of water supply pricing, and increase the transparency of water pricing decisions. At the same time, we will actively implement a step-by-step water price system for residential water use, reduce the impact of water price adjustments on low-income families, and increase residents' awareness of water conservation.
The person in charge of the introduction of the competition mechanism in the power sales market stated that the ultimate goal of the reform of electricity prices is that the prices of electricity generated and sold are formed by market competition, and the prices of transmission and distribution are set by the government. In accordance with this reform goal, in the first half of this year, new reform measures were introduced in terms of on-grid tariffs and sales tariffs.
The first is to improve the pricing policy for renewable energy power generation. In order to standardize wind power price management, the National Development and Reform Commission issued the “Circular on Perfecting the On-grid Tariff Policy of Wind Power Generation.” According to the state of wind energy resources and project construction conditions, the country is divided into four types of wind resource areas, and wind power benchmarks are developed accordingly. Electricity price. On the one hand, by proactively publishing the benchmark price level, providing investors with clear investment expectations, encouraging the development of quality resources, limiting the development of low-quality resources, and facilitating the orderly development of wind power development; on the other hand, it is also conducive to encouraging wind power companies to continue Reduce investment costs and operating costs, improve the efficiency of business management, and promote the healthy development of the wind power industry.
The second is to promote direct trading between power users and power generation companies. In March of this year, 20% of the electricity sales market was clearly liberalized, allowing large-scale industrial users that meet the national industrial policy and with a power voltage rating of 110 kilovolts or more to allow them to directly purchase electricity from power generation companies, and encourage supply and demand sides to negotiate pricing. In June, relevant departments further regulated and guided the pilot work of direct trading between power users and power generation companies. The promulgation of these policies has further promoted the reform of electricity prices, which is conducive to introducing competition mechanisms, increasing the power users' right to choose, and promoting the formation of a reasonable electricity pricing mechanism.
The third is to rectify the preferential tariff. The National Development and Reform Commission jointly issued a notice with the State Electricity Regulatory Commission and the National Energy Administration to reduce the on-grid tariff of power generation companies or the sales price of power companies in the name of bilateral transactions between sending and using power companies, and on high-energy-consuming enterprises. The implementation of preferential tariff measures will be fully cleared.
The person in charge of the National Development and Reform Commission stated that in the next step, it will continue to deepen reform of electricity prices in accordance with the established direction of reform. Guide the development of direct trading pilots between power users and power generation companies; research and formulate on-grid tariffs for large-scale grid-connected photovoltaic power plants; improve the pricing mechanism for biomass power generation; pay close attention to the study of guidelines for the distribution of sales price classification structures; reduce cross-subsidies; and further standardize energy trading Price management approach.
Timely adjustment and appropriate control of refined oil prices. This year, according to the changes in the international market oil prices, the state has adjusted its refined oil prices, including 3 controlled-increased refined oil prices, and 2 lower refined oil prices. To revitalize the enthusiasm of oil refining companies and ensure the supply of domestic refined oil products has played a positive role.
According to the person in charge of the National Development and Reform Commission, China’s dependence on foreign oil consumption has reached more than 50%, and it is still rising year by year. However, due to the irrational economic structure of China, the mode of economic growth is extensive, the consumption of petroleum resources is excessive, and waste is prominent. Therefore, advancing the reform of refined oil prices and rationalizing the price of refined oil products are conducive to exerting leverage on prices, promoting the conservation of oil resources and environmental protection, facilitating the transformation of economic development patterns, and achieving sustainable economic and social development. He said that under the current operating system, there are still many contradictions and problems in advancing the reform of refined oil prices. The relevant systems and methods also need to be continuously improved. In the next step, relevant departments will continue to resolutely implement the mechanism for the formation of refined oil prices approved by the State Council, and make contributions to maintaining the sustained and healthy development of the national economy and continuously improving the people’s living standards. At the same time, we must fully consider the affordability of all sectors of society and timely adjust and appropriately control the price of refined oil.

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