Re signing is difficult for users to accept, and the power plant can
2021-11-04
"Carry out the replacement and supplementary signing of medium and long-term power contracts", "replace and sign the annual long-term agreement contract in the fourth quarter as soon as possible" and "complete the floating adjustment of annual medium and long-term transaction electricity price as soon as possible"... Recently, under the background of rising coal price and tight power supply and demand, all localities have successively issued on grid electricity price adjustment policies and put forward treatment opinions such as adjusting the original medium and long-term contracts.
"There was no negotiation in the whole process, but a paper document was issued and asked to change the signed contract. Isn't this a mandatory price increase?" "it's naturally difficult for users to accept, but I'm afraid the power generation enterprise can't support it without price increase"... The reporter recently received feedback from many market subjects. Users think such price increase is unreasonable, and the power plant expects the price increase to be "urgent".
The proportion of annual contracted electricity of medium and long-term power contracts reaches more than 90%, which is the "ballast" of the power market system. China's power market has never had a precedent of re signing medium and long-term contracts before. This time, many places issued documents to propose re signing, which soon attracted the attention of market subjects and the power industry.
Industry insiders believe that how to scientifically, reasonably and orderly realize the upstream and downstream price guidance of power production and consumption, and make the market subjects generally accept the power market rules of "rise and fall" is the focus that should be considered at present.
The price rise is good for the power plant, but it is difficult for users to accept
The "emergency notice on further adjusting the regional power market trading scheme in 2021" issued by the Department of industry and information technology of Guangxi Zhuang Autonomous Region on October 17 clearly carries out the replacement and supplementary signing of medium and long-term power contracts; The retail side contract signed between the power selling company and the power user shall be re signed or supplemented according to the above provisions. According to the reporter, at present, Ningxia, Hebei, Tianjin, Gansu and other provinces and regions have successively issued documents to raise the medium and long-term electricity prices in the fourth quarter or November and December.
In this regard, Zhan Shuguang, a lawyer of Beijing Xinnuo law firm, said that according to the provisions of the civil code, if the user agrees, it belongs to the problem of contract change, which is a reasonable behavior, but the specific agreement of the medium and long-term contract or the negotiation results of both parties should also be considered.
"At present, the government does not negotiate with users, but directly increases the price with a notice. For a long time, China's medium and long-term power contracts have been signed on the principle of 'take or pay, deviation settlement and good faith performance'. According to common sense, no user is willing to increase the price of the signed medium and long-term contracts again." a user in Northwest China frankly told reporters.
A person in the industry in Guangdong said that the local requirements for re signing the contract are mainly to deal with the operating risks of the power plant caused by the sharp rise in coal price and cost, as well as the upcoming needs of people's livelihood. "In essence, it is to maintain the sustainable development of the power system and avoid the risk of social and economic operation caused by large-scale loss and bankruptcy of power generation enterprises."
The electricity price does not affect the power generation side, and the forced diversion affects the user side. It seems that it is difficult to have both sides. However, according to Feng Yongsheng, associate researcher of the Institute of financial strategy of the Chinese Academy of Social Sciences, power generation enterprises and users have no choice under the current situation. "The current market design can neither provide sufficient liquidity nor ensure the rationality of pricing, and it is more difficult to provide both the supplier and the demander with tools to avoid the risk of price fluctuation. It is reasonable that the user can choose to change the generator or not trade, but the user can't choose to agree to the price increase. Moreover, the power plant can't afford it, and the government can only ask for the re signing of medium and long-term contracts. This kind of spear To a certain extent, it will force the reform of electricity price policy and the construction of electricity market, so that electricity price can guide supply and demand in advance before the government does not intervene. "
Retail market chaos or further spread
"The current situation is special. The impact of rising fuel costs is beyond everyone's expectation. In order to avoid more serious consequences, the government has issued relevant policies to adjust and remedy. However, this measure is not only extensive, but also has a certain impact on the integrity and contract spirit of the power market, especially the retail market." a person from a power generation enterprise in coastal areas told reporters, "Coercive measures are only temporary emergency measures. In the face of long-term price changes in the future, it is inappropriate to modify the signed contract again."
Medium and long-term contracts are not so simple as "change it all at once", and many risks may be hidden.
The above-mentioned insiders in Guangdong said that many users passively modify the wholesale side contracts, and there will be problems in the retail market, such as power sales companies not settling according to the contract and fabricating various price concepts to deceive users. This problem may further spread, and even spread to some contracts in 2022. "In the long run, power users may have a 'reef' mood for the construction and development of the power market, and the resulting chaos in the retail market deserves attention."
For users, the price increase will inevitably affect the interests of the demand side. "At present, the price increase of users is generally 0.07-0.1 yuan / kWh. Taking Gansu as an example, more than 1500 users have adjusted the contract price, and 90% of them are small and medium-sized users, involving a wide range and a wide range of influence." the above-mentioned users in Northwest China said frankly.
Feng Yongsheng believes that the medium and long-term contract should have been a tool for risk management, but now it has become a risk accumulation point, which needs careful analysis and reflection. "The current problems are not only the expectation of market players divorced from the actual supply and demand, but also the forced intervention of the government."
The premise of enhancing market immunity is to improve the mechanism
Insiders generally believe that the establishment of a "rising and falling" power market is a fine activity, and the way of re signing medium and long-term contracts is unsustainable. The key is to improve the construction of the power market, provide the correct price signal and enhance the "immunity" of the power market.
The above-mentioned insiders in Guangdong suggested that medium and long-term contracts should become a real risk aversion tool. "The current liquidity of the power market is not smooth, there is no continuous price signal, and the power generation, power sales, users and the government make blind decisions. The medium and long-term prices signed on this basis are naturally out of touch with the actual situation. There is no basic prediction for power transactions with a scale of hundreds of millions, so it is naturally difficult to 'recruit' market risks. In the future, market prices should be formed by supply and demand, and power futures should be carried out at the same time Trading to improve the hedging ability of the power market. "
Feng Yongsheng believes that the power market construction of "rising and falling" is a systematic project. In addition to improving the basic power market design scheme, we should also embed the risk management of market subjects, especially the price risk management on the user side, in the market design, which can be done. "It should be noted that the focus is not" rising ", but the smooth transmission of prices."
Users in Northwest China said that price and supply and demand fluctuations exist objectively, and the market needs a more fair, fair and open environment. Only the invisible hand of the market can effectively adjust the relationship between supply and demand and optimize the allocation of resources. Non market methods can neither achieve the expectation of benefit distribution nor achieve the survival of the fittest.
Efficient supervision of power market construction is very important. "We should strictly supervise and crack down on Collusion and manipulation in the wholesale market, performance of contracts and deception in the retail market. In particular, at present, many market subjects' cognition of the power market is blank or there are serious cognitive deviations. Whether the market is healthy and mature or not, the understanding and understanding of market subjects are very important and need to be popularized by relevant parties." The above Guangdong industry insiders said.
"There was no negotiation in the whole process, but a paper document was issued and asked to change the signed contract. Isn't this a mandatory price increase?" "it's naturally difficult for users to accept, but I'm afraid the power generation enterprise can't support it without price increase"... The reporter recently received feedback from many market subjects. Users think such price increase is unreasonable, and the power plant expects the price increase to be "urgent".
The proportion of annual contracted electricity of medium and long-term power contracts reaches more than 90%, which is the "ballast" of the power market system. China's power market has never had a precedent of re signing medium and long-term contracts before. This time, many places issued documents to propose re signing, which soon attracted the attention of market subjects and the power industry.
Industry insiders believe that how to scientifically, reasonably and orderly realize the upstream and downstream price guidance of power production and consumption, and make the market subjects generally accept the power market rules of "rise and fall" is the focus that should be considered at present.
The price rise is good for the power plant, but it is difficult for users to accept
The "emergency notice on further adjusting the regional power market trading scheme in 2021" issued by the Department of industry and information technology of Guangxi Zhuang Autonomous Region on October 17 clearly carries out the replacement and supplementary signing of medium and long-term power contracts; The retail side contract signed between the power selling company and the power user shall be re signed or supplemented according to the above provisions. According to the reporter, at present, Ningxia, Hebei, Tianjin, Gansu and other provinces and regions have successively issued documents to raise the medium and long-term electricity prices in the fourth quarter or November and December.
In this regard, Zhan Shuguang, a lawyer of Beijing Xinnuo law firm, said that according to the provisions of the civil code, if the user agrees, it belongs to the problem of contract change, which is a reasonable behavior, but the specific agreement of the medium and long-term contract or the negotiation results of both parties should also be considered.
"At present, the government does not negotiate with users, but directly increases the price with a notice. For a long time, China's medium and long-term power contracts have been signed on the principle of 'take or pay, deviation settlement and good faith performance'. According to common sense, no user is willing to increase the price of the signed medium and long-term contracts again." a user in Northwest China frankly told reporters.
A person in the industry in Guangdong said that the local requirements for re signing the contract are mainly to deal with the operating risks of the power plant caused by the sharp rise in coal price and cost, as well as the upcoming needs of people's livelihood. "In essence, it is to maintain the sustainable development of the power system and avoid the risk of social and economic operation caused by large-scale loss and bankruptcy of power generation enterprises."
The electricity price does not affect the power generation side, and the forced diversion affects the user side. It seems that it is difficult to have both sides. However, according to Feng Yongsheng, associate researcher of the Institute of financial strategy of the Chinese Academy of Social Sciences, power generation enterprises and users have no choice under the current situation. "The current market design can neither provide sufficient liquidity nor ensure the rationality of pricing, and it is more difficult to provide both the supplier and the demander with tools to avoid the risk of price fluctuation. It is reasonable that the user can choose to change the generator or not trade, but the user can't choose to agree to the price increase. Moreover, the power plant can't afford it, and the government can only ask for the re signing of medium and long-term contracts. This kind of spear To a certain extent, it will force the reform of electricity price policy and the construction of electricity market, so that electricity price can guide supply and demand in advance before the government does not intervene. "
Retail market chaos or further spread
"The current situation is special. The impact of rising fuel costs is beyond everyone's expectation. In order to avoid more serious consequences, the government has issued relevant policies to adjust and remedy. However, this measure is not only extensive, but also has a certain impact on the integrity and contract spirit of the power market, especially the retail market." a person from a power generation enterprise in coastal areas told reporters, "Coercive measures are only temporary emergency measures. In the face of long-term price changes in the future, it is inappropriate to modify the signed contract again."
Medium and long-term contracts are not so simple as "change it all at once", and many risks may be hidden.
The above-mentioned insiders in Guangdong said that many users passively modify the wholesale side contracts, and there will be problems in the retail market, such as power sales companies not settling according to the contract and fabricating various price concepts to deceive users. This problem may further spread, and even spread to some contracts in 2022. "In the long run, power users may have a 'reef' mood for the construction and development of the power market, and the resulting chaos in the retail market deserves attention."
For users, the price increase will inevitably affect the interests of the demand side. "At present, the price increase of users is generally 0.07-0.1 yuan / kWh. Taking Gansu as an example, more than 1500 users have adjusted the contract price, and 90% of them are small and medium-sized users, involving a wide range and a wide range of influence." the above-mentioned users in Northwest China said frankly.
Feng Yongsheng believes that the medium and long-term contract should have been a tool for risk management, but now it has become a risk accumulation point, which needs careful analysis and reflection. "The current problems are not only the expectation of market players divorced from the actual supply and demand, but also the forced intervention of the government."
The premise of enhancing market immunity is to improve the mechanism
Insiders generally believe that the establishment of a "rising and falling" power market is a fine activity, and the way of re signing medium and long-term contracts is unsustainable. The key is to improve the construction of the power market, provide the correct price signal and enhance the "immunity" of the power market.
The above-mentioned insiders in Guangdong suggested that medium and long-term contracts should become a real risk aversion tool. "The current liquidity of the power market is not smooth, there is no continuous price signal, and the power generation, power sales, users and the government make blind decisions. The medium and long-term prices signed on this basis are naturally out of touch with the actual situation. There is no basic prediction for power transactions with a scale of hundreds of millions, so it is naturally difficult to 'recruit' market risks. In the future, market prices should be formed by supply and demand, and power futures should be carried out at the same time Trading to improve the hedging ability of the power market. "
Feng Yongsheng believes that the power market construction of "rising and falling" is a systematic project. In addition to improving the basic power market design scheme, we should also embed the risk management of market subjects, especially the price risk management on the user side, in the market design, which can be done. "It should be noted that the focus is not" rising ", but the smooth transmission of prices."
Users in Northwest China said that price and supply and demand fluctuations exist objectively, and the market needs a more fair, fair and open environment. Only the invisible hand of the market can effectively adjust the relationship between supply and demand and optimize the allocation of resources. Non market methods can neither achieve the expectation of benefit distribution nor achieve the survival of the fittest.
Efficient supervision of power market construction is very important. "We should strictly supervise and crack down on Collusion and manipulation in the wholesale market, performance of contracts and deception in the retail market. In particular, at present, many market subjects' cognition of the power market is blank or there are serious cognitive deviations. Whether the market is healthy and mature or not, the understanding and understanding of market subjects are very important and need to be popularized by relevant parties." The above Guangdong industry insiders said.