The general direction of energy price reform in China is in line with international standards

June 21 04:01:09, 2018

Zhang Guobao, deputy director of the National Development and Reform Commission and director of the National Energy Administration, said at the first press conference since the establishment of the National Energy Administration on the day before that whether the refined oil price adjustment after the Olympic Games has no plan, depends on China’s overall economic development. The situation, as well as the energy situation at home and abroad and other factors.

Zhang Guobao pointed out that China is gradually transitioning from the government-controlled price system to the market price system, but the price of refined oil in China is gradually approaching international standards due to factors such as the degree of domestic affordability. It has not yet been fully realized. Internationally integrated, but lower than the international market price. He also stressed that the overall direction of energy price reform is to follow international market rules, but there is no plan for rising oil prices after the Olympic Games.

As to whether China will raise the price of electricity after the Olympics, Zhang Guobao said that China’s current power shortage is not due to the shortage of power installed capacity, but because of the tight supply of coal. In recent years, China’s electric power has developed rapidly. Under the background of rapidly increasing demand for coal from other coal-consuming industries such as steel, the supply of coal is relatively unable to meet the needs of electric power development. The price of coal in China is determined by the market. On the basis of the tight supply of domestic coal and the rapid rise in international coal prices, China's coal prices have risen rapidly.

Zhang Guobao stated that in order to control the level of rising prices and protect people’s lives, although China raised the price of electricity on June 19, it did not make any adjustments to the electricity prices of residents. With the rapid rise in coal prices, the benefits of some power plants have declined, and in some regions, the problem of power supply shortages has been reflected. Zhang Guobao said: "This phenomenon has aroused the attention of the State Council and established the 'coal power and oil transportation coordination leading group' to strengthen the power dispatch in areas where there is a shortage of coal and electricity. We will also adopt a series of measures to increase the Production and coal supply."