The two major power grids jointly promote the reform of electricity and reduce the cost of users
The latest data highlights the positive impact of the new wave of reform policies, as the initial benefits of these reforms begin to materialize. In 2017, both the State Grid Corporation of China and China Southern Power Grid significantly reduced users' electricity costs, with reductions of 103.2 billion yuan and 54.5 billion yuan respectively. This marks a significant step forward in realizing the goals set by the government to improve efficiency and reduce costs for consumers.
In addition, during 2017, the State Grid completed system reforms across 21 secondary units and 123 lower-level units, while China Southern Power Grid successfully implemented ownership reforms for 138 state-owned enterprises. These efforts reflect a strong commitment to modernizing the power sector and enhancing operational efficiency.
Faced with the demands of the new era, both major power grid companies have set ambitious strategic goals. The State Grid aims to become a world-class energy internet company with outstanding competitiveness, while China Southern Power Grid is accelerating its journey toward becoming a globally competitive enterprise. To achieve these objectives, both companies are deeply committed to comprehensive reform, focusing on market-oriented strategies and supply-side structural adjustments.
As emphasized by the President of the State Grid at the 2018 work conference, "To build a world-class energy internet company, we must enhance our awareness of reform, follow the general trend, focus on supply-side structural reforms, and ensure that all reform measures are effective."
Electric power reform has already begun to show tangible results in reducing user costs. The State Grid's first corporate social responsibility report in the new era revealed that the company continued to promote power reform in 2017, including the introduction of incremental power distribution, the establishment of mixed-ownership and power sales companies, and exploring market-based solutions to address issues like 'three abandonments.' Additionally, the company worked closely with the National Development and Reform Commission to implement cross-regional transmission pricing reforms and complete provincial grid transmission and distribution pricing.
Data from 2017 shows that the total trading volume of power trading organizations reached 4,046.7 billion kWh, with 12,095 billion kWh traded in the market. Through tariff approvals, direct annual trading, elimination of urban utility surcharges, and the cancellation of tariffs for electric iron, user electricity bills were reduced by 73.7 billion yuan, while direct transactions saved users an additional 29.5 billion yuan.
South China Power Grid has also made significant progress in the past five years, focusing on supply-side structural reforms and delivering substantial cost reductions for users in the southern provinces. In 2016 and 2017, the company cut electricity costs by 28.2 billion yuan and 54.5 billion yuan respectively. It also implemented provincial tariff reforms, promoted cross-provincial transmission pricing, and expanded market-oriented transactions, which accounted for 30.1% of South Net’s sales in 2017.
Strong organizational support is essential for successful reform. The company system plays a key role in defining the boundaries between different governance bodies, ensuring efficient operations and promoting market-driven mechanisms. With the completion of their company system reforms in 2017, both State Grid and South China Power Grid are well-positioned to drive innovation and growth.
Looking ahead, the State Grid will continue to advance electric power reform, aligning with national directives and working closely with the National Development and Reform Commission to complete inter-provincial transmission price verifications. The company plans to expand the national unified power market, improve medium-term trading mechanisms, and break down provincial barriers to facilitate smoother market integration.
At the same time, the company will actively participate in pilot projects for incremental power distribution, promote clean energy consumption, and collaborate on special treatments for coal-fired power plants to create a fairer electricity market environment.
China Southern Power Grid will also deepen its reform efforts this year, using a "plan + market" model to conduct provincial market-oriented transactions and improve water and electricity exchange mechanisms, helping to boost clean energy use in western regions.
In terms of state-owned asset and enterprise reform, the State Grid will continue to push for mixed-ownership reforms, standardize organizational structures, and strengthen business integration. By implementing classified reforms and promoting marketization, the company aims to enhance efficiency, improve incentives, and foster a more dynamic workforce.
China Southern Power Grid will also focus on internal institutional reforms and accelerate its transformation and upgrading. Its chairman, Li Qingkui, emphasized the need to embrace new development concepts, deepen supply-side structural reforms, and adjust industrial layouts to build a world-class global enterprise.
stainless steel antenna,stainless steel whip antenna,metal cb antenna,stainless steel cb antenna
Mianyang Ouxun Information Industry Co., Ltd , https://www.ouxunantenna.com