Pricing mechanism of power transmission and distribution of provincial grids unveiled

‍‍‍‍National Development and Reform Commission announced on January 4 that the Pricing Mechanism of Power Transmission and Distribution of Provincial Power Grids (for Trail Implementation) was unveiled recently, which is the first pricing mechanism in the Chinese history to lessen the monopoly role of extra-large power grid companies. The measure clearly puts forward an independent pricing system of power transmission and distribution, stipulating that to decide the regulated income of power transmission and distribution based on the assets and costs of relevant services and to establish a transparent and independent power transmission and distribution pricing mechanism of clear regulation, reasonable standards and powerful supervision by differentiating voltage classes and users' types. The measure requires that power grid enterprises should ensure the safe and reliable electric power supply, and power transmission and distribution prices should reveal costs of the transmitting and distributing reasonably, in a bid to provide high-quality power transmission and distribution services at prices as low as possible.‍‍‍‍