Multi-pronged Approach to Solve the Troubles and Push Forward Power Price Reform

From January to August this year, thermal power companies realized a total profit of 12.2 billion yuan, a negative growth for eight consecutive months. The thermal power business of the five major power generating groups suffered a large loss, of which the debt ratio of Datang Power was as high as 88.7%. During the three years from 2008 to 2010, the accumulated losses of the five major power generation groups reached 60.257 billion yuan. Under the huge pressure of high coal prices, thermal power as the main body of the power industry is facing an unprecedented test.
How to solve the problems faced by thermal power companies has become the focus of debates. Some people have proposed raising the price of electricity. Some have proposed to promote coal-fired electricity joint ventures. Some have proposed the implementation of coal-electricity integration. Of course, Lang Xianping and others are pointing to thermal power companies crying for the poor. Zhou Xiujie, a researcher in the energy industry of China Investment Advisors, believes that it is not unusual for thermal power companies to lose money when coal prices rise sharply and thermal power on-grid prices do not increase. However, to solve this problem is not simply to raise the price of electricity or to implement coal-fired electricity and coal integration.
From the perspective of system theory, the entire power system can be regarded as a whole, but external factors (rising coal prices) cause problems in this system, and the key links (thermal power companies) suffer serious losses. In the long run, the losses of thermal power companies will gradually affect the operation of the entire power system, and the negative impact on the entire national economy will gradually emerge. Therefore, this issue must be resolved.
There are basically three ways to solve this problem: increase electricity prices, coal-fired electricity and coal and electricity integration. However, these three methods ignore a problem in system theory, that is, the short-term effectiveness and long-term ineffectiveness of countermeasures. Another neglected problem is the time lag of countermeasures. Raising electricity prices in the short term is the most direct and effective method, but it is inefficient or even ineffective in the long run. Because the rise in coal prices will offset the benefits brought by rising electricity prices, the continued rise in electricity prices will hurt the healthy development of the national economy.
The coal-electricity coalition and coal-electricity integration have large time lag. The implementation of these two policies will take a long time to show their effect. It will not provide immediate results, and will not effectively alleviate the various existing thermal power companies. problem. Coal-fired power generation and integration did not fundamentally solve the thermal power companies' own problems, but only transferred them to the thermal power company's losses, or used the profits of the coal industry to make up for the thermal power industry's losses.
Zhou Xiujie believes that in order to solve the problems existing in the thermal power industry, we must focus our attention on the long-term focus, eliminate short-term countermeasures under the most possible conditions, or use short-term countermeasures to obtain time and seek a more appropriate long-term solution. At present, the fundamental method to solve the thermal power company's losses is to promote the reform of the power system and establish a power system with separate transmission, distribution and bidding. This is a point that the government must always adhere to and must not be relaxed. Under the premise of insisting on the reform of the power system, we will appropriately increase the on-grid tariff and ease the current plight of thermal power companies.
Zhang Yulin, research director of China Investment Consulting Co., Ltd., stated that policy makers should make full use of the viewpoint of system theory and proceed from the overall and long-term perspectives. Short-term actions should not be taken due to short-term interests. The current problems in the power system are obvious. The government should focus on the overall situation of the power system reform and actively promote the reform of electricity prices.

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