State Grid is accused of raising demand for sales by adjusting demand

Recently, power shortages will occur in 10 provincial power grids. The State Grid Corporation of China (hereinafter referred to as “State Grid”) said it will increase the adjustment of price leverage to reduce unreasonable power demand.

In this regard, some power experts believe that the national grid's move is to emphasize the importance of the power grid, and further "lobby" the price increase of sales electricity prices.

"The total power gap this year may exceed the worst in history in 2004." Shuai Junqing, deputy general manager of the State Grid Corporation of China, predicted that the power gap within the 26 provinces of the State Grid alone will reach 30 million kilowatts. Ten provincial-level power grids such as Beijing-Tianjin-Tangshan, Hebei, Shanghai, Jiangsu, and Chongqing will have tight supply and demand. If the situation increases, the power gap will reach 40 million kilowatts.

Shuai Junqing said that the State Grid will strictly control the use of electricity by the “two high” enterprises and overcapacity industries, and reduce the demand for unreasonable electricity. Cooperate with the local government to improve the peak-to-valley time-of-use electricity price, strictly implement the differential electricity price of high-energy-consuming industries, and increase the adjustment of price leverage.

In response to the above statement by Shuai Junqing, some power experts have analyzed the “First Financial News (microblogging) daily report” that the State Grid has been under great pressure after raising the on-grid tariffs in 15 provinces such as Shanxi and Hunan, and may take the opportunity to emphasize the terminal sales price. The adjustment of demand factors such as high-energy-consuming enterprises to increase the importance attached by the competent national authorities to this link. “The ten provincial power grids will have power shortages, which obviously emphasizes the importance of the grid, suggesting a price increase for the sale of electricity,” the source said.

Lin Boqiang, director of the China Energy Economic Research Center of Xiamen University, also told this newspaper that after the 15 provinces raised the on-grid tariff, the power generation group was still likely to raise the feed-in tariff on the bet, so it began to invest in the construction of new thermal power installed capacity.

According to the "2010 Annual Electricity Regulatory Report" issued by the State Electricity Regulatory Commission on May 5, in 2010, the transmission and distribution costs of the two major power grid companies as the main business totaled 422.241 billion yuan, an increase of 20.92% over the same period of the previous year.

Bai Jianhua, senior economist of the State Grid Energy Research Institute, told this newspaper that the grid company is operating at a low profit rate. The return on fixed assets of foreign grid companies is generally above 15%, while the return on fixed assets of China's power grid companies in recent years. Both are 1% to 4%. Therefore, if the coal-electricity linkage is not in place for a long time and is limited to raising the on-grid tariff instead of selling electricity prices, the national grid will also be unbearable.

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