Why is the power grid company purchasing electricity cheaper?
2021-12-10
Core reading
The seemingly win-win situation actually hides many market hidden dangers. A fair, just and open power market is the soil on which the market players rely for survival.
Recently, the State Grid Corporation of China and the power grid companies within the jurisdiction of China Southern Power Grid have successively announced the electricity price list of electrician commercial users in December 2021, with the purchasing price ranging from 0.2513-0.5044 yuan / kWh.
Power grid enterprises purchasing electricity on behalf of others was first seen in the notice on further deepening the market-oriented reform of on grid electricity price for coal-fired power generation (fgjg [2021] No. 1439) (hereinafter referred to as "No. 1439 document") issued by the national development and Reform Commission on October 11. In the same month, the national development and Reform Commission issued a detailed "manual" - Notice on matters related to organizing and carrying out power purchase by power grid enterprises (fgbgj [2021] No. 809) (hereinafter referred to as "Document No. 809").
Insiders pointed out that according to the disclosed data, power grid enterprises' agent power purchase can be cheaper than that of power sales companies. Why?
Lower power grid purchasing price
At present, there are roughly three ways for users to participate in the market: direct participation, agency of power sales company and agency of power grid company. Document No. 809 divides the industrial and commercial users represented by power grid enterprises into three categories, namely, users who are temporarily unable to participate directly, do not participate directly, have directly participated in market transactions and quit.
"According to the data released in December, the electricity price of power grid agents is indeed lower than that of entrusted power sales companies". Reporters interviewed many users and basically got similar answers.
According to the notice on the results of power purchase transactions by power grid enterprises in Chongqing from November to December 2021 released by Chongqing Electric Power Trading Center on November 30, the listing price of power purchase by power grid agents is 0.4753 yuan / kWh. According to the estimates of insiders, in terms of the final hand price, the agency price of power grid is cheaper than that of power selling companies.
The situation is similar not only in Chongqing but also in many places. "From the agency price published in December, the agency of power grid companies is about two cents less per kilowatt hour than that of power sales companies." Said a staff member of a power sales company with the background of a state-owned enterprise in Gansu Province. The staff of Guangdong private power sales company said: "the agency price of Guangdong power grid company is also lower than the market-oriented agency price, which is transmitted to the purchasing users according to the weighted average price of purchased non market power supply and market-oriented power supply."
How does preferential power generation affect agency electricity price
Why are grid enterprise agents cheaper? Zhang Ji, chief Trading Officer of zhongjianeng, told reporters that the reason lies in giving priority to power generation. If the price is formed in strict accordance with the market, it will not be so low.
How does preferential power generation affect the agency price? In Document No. 809 "determining the market-oriented power purchase scale of power grid enterprises", it is clear that the preferential power generation (excluding coal-fired power generation) implemented by all localities will continue to be purchased by power grid enterprises according to the current price mechanism to ensure the power consumption of residents and agricultural users. Where there is surplus power and can not be released temporarily, The remaining electricity can be temporarily used as the power source for power grid enterprises to purchase electricity for industrial and commercial users.
What is priority power generation? The notice on regulating the management of preferential power generation and preferential power purchase plan issued by the national development and Reform Commission and the National Energy Administration in 2019 points out that preferential power generation is an effective way to realize the guaranteed acquisition of clean energy such as wind power and solar power, ensure the full generation and safe operation of clean energy such as nuclear power and large hydropower according to the base load, and promote the stable operation of regulatory power sources such as peak shaving and frequency modulation. Preferential power purchase is a necessary measure to provide guarantee services for key power consumption such as residents, agriculture, important public utilities and public welfare services, and ensure the safety and reliability of power consumption for people's livelihood.
"Priority power generation is planned power generation, which is strictly guaranteed according to the declared planned capacity, but there will be deviations between the actual use and the declared plan. For example, the declared power of 10 billion kwh, 9 billion kwh actually used, and the remaining 1 billion kwh unused is a negative deviation, that is, the 'remaining power' pointed out in Document No. 809."
Zhang Ji further pointed out that before, industrial and commercial electricity prices were among the priority power purchase, and now they are still calculated together with agricultural and residential electricity prices after entering the market. "First, the policy has just been issued, and second, the workload is heavy, so it is not a long-term plan to settle accounts in one pool temporarily. From the perspective of 809 orientation, if it can be market-oriented, it is still necessary to gradually promote the users of power grid agents to gradually enter the market and narrow the scope of agents. In addition to the remaining electricity, there are foreign electricity with a price lower than that of local coal electricity, which are also controlled by power grid enterprises, And lower than the market price. "
Temporary low prices do not represent long-term interests
No. 1439 civilization clearly pointed out that the agency power purchase price is mainly formed through on-site centralized bidding or competitive bidding. Document No. 809 also points out that power grid enterprises participate in market clearing as price recipients in the way of volume without quotation. Individual power grid companies have not implemented the agency power purchase scheme in strict accordance with documents No. 1439 and No. 809. Why can they be supervised by the local government? A local government staff revealed: "with the tacit consent of many places, the electricity price fluctuation of power grid enterprises is small."
The seemingly harmonious situation among many parties actually hides many market hidden dangers.
"The power grid agent is the receiver of weak market bargaining power and high market price, so the enthusiasm of users to really participate in the market will be weakened. At the same time, users who have entered the market will take this as a reference. Everyone requires a price lower than the average wholesale price rather than the electricity price formed by following the market-oriented method. Users who are higher than the average wholesale price in the market will also try every means to change it Power grid agent purchases electricity. " The person in charge of Guangdong power sales company said.
The staff of Gansu Power sales company pointed out that the advantages of power grid enterprises in purchasing electricity on behalf of other market subjects cannot compete, and such operation will inevitably squeeze the living space of other market subjects. "If these industrial and commercial users gradually withdraw from the agency next year, they may be handed over to the power sales company under the integrated energy service company of the power grid company. In response, the national development and Reform Commission and the National Energy Administration issued the measures for the administration of power sales companies, which pointed out that the power sales companies (including wholly-owned, holding or equity participation) affiliated to power grid enterprises (including affiliated enterprises) It should have an independent legal personality and operate independently. The supervision of power distribution companies of power grid enterprises is further tightened. Of course, the specific development depends on the development trend next year. "
The above-mentioned experts further pointed out that: "For local governments, the key is to strictly implement document 1439 and document 809. The temporary pressure is understandable, but building a fair, fair and open power market is the fundamental policy. The next step is to strengthen supervision, urge the power grid to participate in transactions with a reasonable and open trading strategy, form agency prices in a market-oriented manner, and stand on the same starting line with other market members "Customer service."
The seemingly win-win situation actually hides many market hidden dangers. A fair, just and open power market is the soil on which the market players rely for survival.
Recently, the State Grid Corporation of China and the power grid companies within the jurisdiction of China Southern Power Grid have successively announced the electricity price list of electrician commercial users in December 2021, with the purchasing price ranging from 0.2513-0.5044 yuan / kWh.
Power grid enterprises purchasing electricity on behalf of others was first seen in the notice on further deepening the market-oriented reform of on grid electricity price for coal-fired power generation (fgjg [2021] No. 1439) (hereinafter referred to as "No. 1439 document") issued by the national development and Reform Commission on October 11. In the same month, the national development and Reform Commission issued a detailed "manual" - Notice on matters related to organizing and carrying out power purchase by power grid enterprises (fgbgj [2021] No. 809) (hereinafter referred to as "Document No. 809").
Insiders pointed out that according to the disclosed data, power grid enterprises' agent power purchase can be cheaper than that of power sales companies. Why?
Lower power grid purchasing price
At present, there are roughly three ways for users to participate in the market: direct participation, agency of power sales company and agency of power grid company. Document No. 809 divides the industrial and commercial users represented by power grid enterprises into three categories, namely, users who are temporarily unable to participate directly, do not participate directly, have directly participated in market transactions and quit.
"According to the data released in December, the electricity price of power grid agents is indeed lower than that of entrusted power sales companies". Reporters interviewed many users and basically got similar answers.
According to the notice on the results of power purchase transactions by power grid enterprises in Chongqing from November to December 2021 released by Chongqing Electric Power Trading Center on November 30, the listing price of power purchase by power grid agents is 0.4753 yuan / kWh. According to the estimates of insiders, in terms of the final hand price, the agency price of power grid is cheaper than that of power selling companies.
The situation is similar not only in Chongqing but also in many places. "From the agency price published in December, the agency of power grid companies is about two cents less per kilowatt hour than that of power sales companies." Said a staff member of a power sales company with the background of a state-owned enterprise in Gansu Province. The staff of Guangdong private power sales company said: "the agency price of Guangdong power grid company is also lower than the market-oriented agency price, which is transmitted to the purchasing users according to the weighted average price of purchased non market power supply and market-oriented power supply."
How does preferential power generation affect agency electricity price
Why are grid enterprise agents cheaper? Zhang Ji, chief Trading Officer of zhongjianeng, told reporters that the reason lies in giving priority to power generation. If the price is formed in strict accordance with the market, it will not be so low.
How does preferential power generation affect the agency price? In Document No. 809 "determining the market-oriented power purchase scale of power grid enterprises", it is clear that the preferential power generation (excluding coal-fired power generation) implemented by all localities will continue to be purchased by power grid enterprises according to the current price mechanism to ensure the power consumption of residents and agricultural users. Where there is surplus power and can not be released temporarily, The remaining electricity can be temporarily used as the power source for power grid enterprises to purchase electricity for industrial and commercial users.
What is priority power generation? The notice on regulating the management of preferential power generation and preferential power purchase plan issued by the national development and Reform Commission and the National Energy Administration in 2019 points out that preferential power generation is an effective way to realize the guaranteed acquisition of clean energy such as wind power and solar power, ensure the full generation and safe operation of clean energy such as nuclear power and large hydropower according to the base load, and promote the stable operation of regulatory power sources such as peak shaving and frequency modulation. Preferential power purchase is a necessary measure to provide guarantee services for key power consumption such as residents, agriculture, important public utilities and public welfare services, and ensure the safety and reliability of power consumption for people's livelihood.
"Priority power generation is planned power generation, which is strictly guaranteed according to the declared planned capacity, but there will be deviations between the actual use and the declared plan. For example, the declared power of 10 billion kwh, 9 billion kwh actually used, and the remaining 1 billion kwh unused is a negative deviation, that is, the 'remaining power' pointed out in Document No. 809."
Zhang Ji further pointed out that before, industrial and commercial electricity prices were among the priority power purchase, and now they are still calculated together with agricultural and residential electricity prices after entering the market. "First, the policy has just been issued, and second, the workload is heavy, so it is not a long-term plan to settle accounts in one pool temporarily. From the perspective of 809 orientation, if it can be market-oriented, it is still necessary to gradually promote the users of power grid agents to gradually enter the market and narrow the scope of agents. In addition to the remaining electricity, there are foreign electricity with a price lower than that of local coal electricity, which are also controlled by power grid enterprises, And lower than the market price. "
Temporary low prices do not represent long-term interests
No. 1439 civilization clearly pointed out that the agency power purchase price is mainly formed through on-site centralized bidding or competitive bidding. Document No. 809 also points out that power grid enterprises participate in market clearing as price recipients in the way of volume without quotation. Individual power grid companies have not implemented the agency power purchase scheme in strict accordance with documents No. 1439 and No. 809. Why can they be supervised by the local government? A local government staff revealed: "with the tacit consent of many places, the electricity price fluctuation of power grid enterprises is small."
The seemingly harmonious situation among many parties actually hides many market hidden dangers.
"The power grid agent is the receiver of weak market bargaining power and high market price, so the enthusiasm of users to really participate in the market will be weakened. At the same time, users who have entered the market will take this as a reference. Everyone requires a price lower than the average wholesale price rather than the electricity price formed by following the market-oriented method. Users who are higher than the average wholesale price in the market will also try every means to change it Power grid agent purchases electricity. " The person in charge of Guangdong power sales company said.
The staff of Gansu Power sales company pointed out that the advantages of power grid enterprises in purchasing electricity on behalf of other market subjects cannot compete, and such operation will inevitably squeeze the living space of other market subjects. "If these industrial and commercial users gradually withdraw from the agency next year, they may be handed over to the power sales company under the integrated energy service company of the power grid company. In response, the national development and Reform Commission and the National Energy Administration issued the measures for the administration of power sales companies, which pointed out that the power sales companies (including wholly-owned, holding or equity participation) affiliated to power grid enterprises (including affiliated enterprises) It should have an independent legal personality and operate independently. The supervision of power distribution companies of power grid enterprises is further tightened. Of course, the specific development depends on the development trend next year. "
The above-mentioned experts further pointed out that: "For local governments, the key is to strictly implement document 1439 and document 809. The temporary pressure is understandable, but building a fair, fair and open power market is the fundamental policy. The next step is to strengthen supervision, urge the power grid to participate in transactions with a reasonable and open trading strategy, form agency prices in a market-oriented manner, and stand on the same starting line with other market members "Customer service."
Source: International Energy Network