On May 15th, the National Development and Reform Commission issued a notice on provincial power grid transmission and distribution tariffs for the third regulatory period and related matters, approving the tariffs based on strict cost supervision and further deepening the reform of transmission and distribution tariffs. This round of tariff reform has taken important steps in improving the regulatory system for transmission and distribution tariffs and accelerating the development of the electricity market. Firstly, the structure of transmission and distribution tariffs is more reasonable, with electricity prices for different voltage levels better reflecting the differences in power supply costs, thus creating favorable conditions for promoting electricity market transactions and facilitating the development of incremental distribution networks and microgrids. Secondly, the functional positioning of transmission and distribution tariffs is clearer, with line losses and pumped storage capacity charges, previously included in the tariffs, now separately accounted for. This change enables a more timely and reasonable reflection of changes in user electricity purchase losses and provides a clear reflection of the costs of power system regulation resources, further strengthening the regulation of grid permitted revenue. Thirdly, the incentive and restraint mechanisms are more robust, as demand tariffs for two-part tariff users with high load rates receive discounted rates, encouraging users to reasonably declare their capacity, thereby enhancing the economic efficiency of the power system.
Notice Issued by the National Development and Reform Commission on Provincial Power Grid Transmission and Distribution Tariffs for the Third Regulatory Period and Related Matters