Overview of energy support policies and resumption of work of large projects of central enterprises

While fighting the epidemic with all their might, the central government, various ministries and commissions, and many provinces and regions have successively issued relevant policies to promote the orderly resumption of work and production of enterprises, help enterprises overcome difficulties, and ensure the smooth operation of the economy. The following are the supportive policies in the energy field sorted out by eo for reference.

Securing energy supply

On February 5, the National Development and Reform Commission and the National Energy Administration held a teleconference in Beijing to analyze and assess the current energy supply situation and re-mobilize and re-deploy the supply guarantee work. The provinces and regions subsequently proposed energy guarantee plans.

Among them, Hebei requires monitoring of power operation status;

Wuxi, Jiangsu Province proposed to strengthen economic operation monitoring and factor guarantee, coordinate and solve major cross-regional, cross-departmental and cross-industry issues in a timely manner, and ensure the stable supply of coal, electricity, oil and gas;

Shanxi requires the Shanxi Electric Power Company to strengthen the forecasting and analysis of the electricity supply and demand situation, the forecast of power balance and the assessment and analysis of power grid security risks, optimize the operation mode of the power grid, and reasonably formulate the start and shutdown plans of the units to ensure the safe and stable supply of electricity and heat.

Hebei, Shandong and other places also mentioned that it is necessary to prevent the sharp rise in regional and temporal factor prices caused by concentrated resumption of production.

Reduce energy costs

● Reduce electricity costs

On February 7, the General Office of the National Development and Reform Commission issued the "Notice of the General Office of the National Development and Reform Commission on Adopting a Supportive Two-Part Electricity Price Policy to Reduce Enterprise Electricity Costs during the Epidemic Prevention and Control Period". The specific content is:

——For enterprises that are temporarily unable to start or resume normal work during the epidemic prevention and control period, the change cycle of capacity (demand) electricity price billing method and the reduction (suspension) period will be relaxed. Electricity users can apply for capacity reduction, suspension, capacity reduction recovery, and suspension recovery today. Users who apply for changes are not subject to conditions such as "the suspension of electricity use must not be less than 15 days", and the capacity (demand) electricity fee will be reduced or exempted. For enterprises that have stopped work or production since the outbreak of the epidemic, the exemption time can be appropriately traced back.

——For enterprises that expand production capacity to meet the needs of epidemic prevention and control, if they originally chose to pay capacity (demand) electricity charges based on the maximum demand in the contract, their actual maximum usage will not be subject to the maximum demand in the contract, and the excess will be charged based on actual usage.

——Make every effort to guarantee the electricity demand of newly built and expanded medical facilities and other places that directly serve the epidemic prevention and control, and take measures such as exempting high-reliability power supply fees to reduce operating costs.

Subsequently, Shandong, Guizhou, Yunnan, Zhejiang, Guangxi, Guangdong, Anhui, Sichuan, Gansu and other places introduced relevant supportive electricity price policies during the epidemic prevention and control period.

In addition to the measures mentioned by the National Development and Reform Commission, Shandong, Guizhou, Hainan, Inner Mongolia, Yunnan, Guangdong and other places have implemented the "no interruption of supply for arrears" measure;

Zhejiang and Anhui stipulate that industrial electricity prices should be adjusted in a timely manner according to national policies.

Sichuan will provide electricity subsidies of 30% of the sales catalog electricity price to small and medium-sized enterprises involved in commercial circulation and production of epidemic prevention drugs, medical equipment, supplies and other epidemic prevention-related products that ensure the supply of daily necessities. The government of the place where the enterprise is registered will provide subsidies of 50% of the actual subsidy amount of the local government.

Chongqing, Shaanxi and Yunnan will settle electricity prices for wholesale, retail, catering and other industries in February and March 2020 at 90% of the current policy.

Fujian has increased the short-term electricity consumption during the Spring Festival by 300 million kWh, and extended the short-term electricity consumption period for power users during the Spring Festival to the end of March to support enterprises to increase production. In terms of gas consumption, Fujian stipulates that for industrial enterprises with an average daily gas consumption of 5,000 cubic meters or more, from February 13 to March 12, 2020, a discount of 0.3 yuan/cubic meter will continue to be given based on actual gas consumption, and the discount amount for a single enterprise shall not exceed 1 million yuan.

Shandong has adjusted the electricity consumption of fresh-keeping storage facilities from the "industrial, commercial and other electricity consumption" category to the "agricultural production electricity consumption" category, which can reduce corporate costs by about 0.1 yuan per kilowatt-hour. Preliminary estimates show that relevant users in the province can reduce their electricity bill burden by 540 million yuan. This policy will continue to be implemented after the epidemic is over, effectively supporting the province's agricultural enterprises to grow bigger and stronger.

Beijing has proposed providing appropriate water and electricity subsidies to ice skating and skiing venues affected by the epidemic.

The State Grid Corporation of China will halve the charging service fees for nearly 30,000 charging piles covering five provinces, including Guangdong, Guangxi, Yunnan, Guizhou and Hainan, from February 6 to February 29.

● Reduce gas cost

Zhejiang and Anhui provinces have stipulated that the price of industrial natural gas will be reduced by 10% for a period of 3 months.

Zhejiang also proposed that the Provincial Natural Gas Development Co., Ltd. reduce the gate station price of natural gas sold to gas companies in all cities with gas supply by 0.14 yuan per cubic meter, all of which will be used to reduce gas prices for companies.

Chongqing and Shaanxi will settle the gas prices for wholesale, retail, catering and other industries in February and March 2020 at 90% of the current policy.

Sichuan encourages the implementation of active and flexible gas price discounts and other measures during the fight against the epidemic.

Yunnan, Anhui, Shandong, Hainan, Inner Mongolia, Guizhou and other provinces have implemented the policy of “no interruption of gas supply for arrears” for the production and operation of small and medium-sized enterprises.

Resumption of large-scale infrastructure projects of energy central enterprises

Ren Hongbin, deputy director of the State-owned Assets Supervision and Administration Commission of the State Council, revealed at a press conference held by the State Council Information Office on the morning of February 18 that according to preliminary statistics, the operation rate of more than 20,000 major production subsidiaries of central enterprises supervised by the SASAC has exceeded 80%. The main reason why the other part has not started is that due to the severe epidemic situation in some regions, enterprises are temporarily unable to start work. The operation rate of industries such as petroleum and petrochemicals, communications, power grids, and transportation has now exceeded 95%, and some have reached 100%.

●China Southern Power Grid

On February 12, the 16th section of the line of the Kunliulong DC Project (full name "UHV Multi-Terminal DC Demonstration Project for Power Transmission from Wudongde Power Station to Guangdong and Guangxi"), an important transmission project for West-East Power Transmission, officially resumed work. The Gaopo Converter Station Reconstruction Project of the Yunnan-Guizhou Interconnection Project, another key transmission project for West-East Power Transmission, also officially resumed work on the 13th. As of February 17, the Southern Power Grid has resumed and started construction on 46 infrastructure projects, including 12 main grid and power supply projects, including the Yunnan Baiyi Transmission and Transformation Project, the Hainan Interconnection Second Circuit Project, and the Meixu Power Station Project.

●State Grid

On February 18, Chairman and Party Secretary Mao Weiming announced the start of construction of the Shanxi Yanqu Pumped Storage Power Station project, marking the full launch of the project construction.

On February 7, the "State Grid Corporation of China has introduced measures to respond to the impact of the epidemic and resume construction to promote the resumption of work and production of enterprises" mentioned that the construction of Xiong'an 500 kV Xiongdong substation and 220 kV transmission project will be started; a number of major projects such as Qinghai-Henan, Ya'an-Jiangxi ±800 kV UHV DC, Zhangbei flexible DC, Mengxi-Jinzhong, Zhangbei-Xiong'an 1000 kV UHV AC will be fully resumed; the Shaanxi-Wuhan ±800 kV UHV DC project will be newly started; the early progress of key projects such as Nanyang-Jingmen-Changsha, Nanchang-Changsha, Jingmen-Wuhan, Zhumadian-Wuhan, Wuhan-Nanchang UHV AC, Baihetan-Jiangsu, Baihetan-Zhejiang UHV DC will be accelerated, and efforts will be made to approve the start of construction as soon as possible.