The national development and Reform Commission says the electricity price of residents is low! Electric power leading stock price increases 10 times, the plate is about to explode?

The national development and Reform Commission says the electricity price of residents is low! Electric power leading stock price increases 10 times, the plate is about to explode?

This year, the electric power industry has received a lot of information, which has caused fluctuations in the capital market. Here comes the list of companies with record share prices.
On June 24, the Chinese government website published a message from the national development and Reform Commission (NDRC) in response to netizens’ comments on “it is suggested to improve the step tariff system for residents and encourage urban and rural residents to use more clean power resources”, which aroused market concern.
The national development and Reform Commission said that for a long time, China has tried out a lower electricity price for residents, and the electricity price for residents is significantly lower than the cost of power supply, because industrial and commercial users bear the corresponding cross subsidies. Compared with other countries in the world, China’s residential electricity price is low, while the industrial and commercial electricity price is high. In accordance with the requirements of further deepening the market-oriented reform of electricity price, the next step is to improve the residents’ step price system, gradually ease the cross subsidy of electricity price, make the electricity price better reflect the cost of power supply, restore the commodity attribute of electricity, and form a residents’ electricity price mechanism that more fully reflects the cost of electricity, the relationship between supply and demand, and the degree of resource scarcity.
In order to encourage urban and rural residents to use more clean power resources and less coal for heating, the opinions on the price policy of clean heating in northern China (fgjg [2017] No. 1684) clearly states that the areas suitable for “coal to electricity” should improve the peak valley time-sharing price system on the sales side, optimize the ladder price policy of residential electricity, and vigorously promote the market-oriented trading mechanism, Reduce the cost of electricity for clean heating.
In fact, the notice on the action plan for deepening the price mechanism reform in the 14th Five Year Plan period issued by the national development and Reform Commission on May 25 has clearly pointed out that the electricity price reform will continue to be deepened during the 14th Five Year Plan period, and the price formation mechanism of provincial power grid, regional power grid, inter provincial and inter regional special projects and incremental distribution network will be further improved, so as to speed up the rationalization of transmission and distribution electricity price structure. We will continue to deepen the market-oriented reform of on grid electricity prices for coal-fired power generation, gas-fired power generation, hydropower and nuclear power generation, improve the price formation mechanism for wind power, photovoltaic power generation and pumped storage, establish a new energy storage price mechanism, steadily promote the reform of sales electricity prices, orderly promote the entry of operating power users into the electricity market, and improve the residential ladder price system.