Ningxia: Expanding the scope of electricity price subsidies for advantageous industries

The General Office of the People's Government of Ningxia Autonomous Region recently issued a notice on 24 opinions on stabilizing the growth of the autonomous region's industrial economy. The notice stated that the scope of electricity price subsidies for advantageous industries will be expanded. The "Plan for Further Reducing the Electricity Cost of Advantageous Industries and Promoting the Adjustment and Optimization of Industrial Structure" will be implemented conscientiously. Existing deep processing enterprises that comply with industrial policies and qualified products of other encouraged enterprises in other industries will be included in the scope of electricity price subsidy support. The output value threshold of the chemical industry will be reduced from more than 100 million yuan to more than 20 million yuan. The restrictive condition of the annual minimum electricity consumption of 3 million kWh will be cancelled.

Increase the proportion of direct electricity trading. Based on the current 50% of the electricity used in production by enterprises, the scale of direct trading will strive to reach more than 60% of the electricity sales in 2020, effectively reducing the electricity costs of enterprises.

Details are as follows:

Notice of the General Office of the People's Government of Ningxia Autonomous Region on Printing and Distributing Twenty-Four Opinions on Stabilizing the Growth of the Autonomous Region's Industrial Economy

Ningzhengbanguifa [2020] No. 1

To the people's governments of all cities, counties (districts), and all departments and directly affiliated institutions of the autonomous region government:

The "Twenty-Four Opinions on Stabilizing the Growth of the Autonomous Region's Industrial Economy" has been approved by the Autonomous Region People's Government and is now issued to you. Please implement it in light of the actual situation.

General Office of the People's Government of Ningxia Hui Autonomous Region

February 5, 2020

(This document is released publicly)

Twenty-four Opinions on Stabilizing the Growth of the Autonomous Region's Industrial Economy

We will conscientiously implement the spirit of the Central Economic Work Conference and the decisions and arrangements of the Autonomous Region Party Committee, fully implement the arrangements of the Autonomous Region Government Work Report, adhere to the general working tone of seeking progress while maintaining stability, adhere to the guidance of the new development concept, adhere to supply-side structural reform as the main line, accelerate industrial transformation and upgrading, further stimulate the vitality of market entities, and ensure that the industrial economy achieves reasonable growth in quantity and steady improvement in quality. The following opinions are put forward.

1. Effectively reduce electricity costs

(I) Expand the scope of electricity price subsidies for advantageous industries. Seriously implement the "Plan for Further Reducing the Electricity Cost of Advantageous Industries and Promoting the Adjustment and Optimization of Industrial Structure". Include the products of existing deep processing enterprises that comply with industrial policies and other industries' encouraged enterprises that meet the conditions in the scope of electricity price subsidies. Reduce the output value threshold of the chemical industry from more than 100 million yuan to more than 20 million yuan. Cancel the restrictive condition of the annual minimum electricity consumption of 3 million kWh. (Responsible units: Autonomous Region Development and Reform Commission, Department of Industry and Information Technology, State Grid Ningxia Electric Power Company)

(II) Raise the subsidy standard for incremental electricity consumption of advantageous industries. Based on the electricity consumption of enterprises in the previous year, the subsidy standard for incremental electricity consumption of enterprises included in the subsidy scope will be increased in a step-by-step manner according to the growth rate, with a maximum of no more than 2 cents/kWh. (Responsible units: Autonomous Region Development and Reform Commission, Industry and Information Technology Department, State Grid Ningxia Electric Power Company)

(III) Increase the proportion of direct electricity trading. Based on the current 50% of electricity used in production by enterprises, the scale of direct trading will strive to reach more than 60% of electricity sales in 2020, effectively reducing the electricity costs of enterprises. (Responsible unit: Autonomous Region Development and Reform Commission)

(IV) Expand the scale of power transmission. Increase coordination with power purchasing provinces and regions, strive to achieve a power transmission of more than 70 billion kWh by 2020, stabilize the power transmission market, and achieve a double increase in the output value and benefits of power transmission power generation enterprises and power grid companies. (Responsible units: Autonomous Region Development and Reform Commission, Industry and Information Technology Department, State Grid Ningxia Electric Power Company)

(V) Determine the transmission and distribution price in accordance with regulations. Strengthen the supervision of transmission and distribution prices, carry out the second round of transmission and distribution cost supervision and audit, scientifically determine and reasonably reduce the transmission and distribution prices. Implement the market-based price mechanism of "base price + floating up and down" from 2020. The electricity price will not be increased in 2020 to ensure that the average electricity price for industry and commerce will only decrease and not increase. (Responsible units: Development and Reform Commission of the Autonomous Region, Market Supervision Bureau, State Grid Ningxia Electric Power Company)

2. Effectively stabilize effective investment

(VI) Promote key industrial projects to reach full capacity and achieve results. Accelerate the implementation of major industrial projects and promote a number of new growth points to reach full capacity and achieve results as soon as possible. Strive to achieve a 100% capacity utilization rate for key production projects. (Responsible units: the Autonomous Region Department of Industry and Information Technology, the People's Governments of the five prefecture-level cities, and the Ningdong Management Committee)

(VII) Promote rapid growth of investment in technological transformation. Ensure that investment in industrial technological transformation grows by more than 15%. Add manufacturing investment assessment to the comprehensive reward and subsidy funds for technological transformation, increase the assessment weight of investment in technological transformation, and issue comprehensive reward and subsidy funds for technological transformation before March each year. (Responsible units: Autonomous Region Department of Industry and Information Technology, Department of Finance)

(VIII) Promote the construction pace of newly started projects. Focus on coordinating and resolving issues related to the preliminary procedures of the projects, and give priority to including projects with fast construction progress in the autonomous region's "three 100" key projects (100 key technical transformation projects, 100 key newly started projects, and 100 key projects to be put into production). (Responsible units: the Autonomous Region's Department of Industry and Information Technology, Development and Reform Commission, Department of Natural Resources, Department of Ecology and Environment, Department of Water Resources, Department of Emergency, five prefecture-level municipal people's governments, Ningdong Management Committee)

3. Ensure the supply of factors

(IX) Make every effort to ensure coal supply. Accelerate the construction of coal projects, release new high-quality coal production capacity, promote the construction of coal reserve bases, give full play to the role of coal trading platforms in the region, support the import of high-quality coal resources from western Inner Mongolia and northern Shaanxi, and improve the quality of coal supply. (Responsible units: the Development and Reform Commission of the Autonomous Region, the Department of Natural Resources, the People's Governments of the five prefecture-level cities, and the Ningdong Management Committee)

(10) Make every effort to ensure the supply of natural gas. Coordinate with the National Development and Reform Commission and China National Petroleum Corporation to increase the gas supply in Ningxia. Establish an early warning mechanism for natural gas supply shortages and gas outages in key industrial enterprises. (Responsible units: the Development and Reform Commission of the Autonomous Region, the People's Governments of the five prefecture-level cities, and the Ningdong Management Committee)

(XI) Make every effort to ensure railway transportation. Further clean up and rectify railway freight charges and railway dedicated line charges; for products that meet the bargaining policy of China Railway Corporation, give preferential prices through bargaining; support the construction of railway dedicated lines, and keep the freight rates of local railways and dedicated lines in a reasonable range. Accelerate the pace of "road to rail" and promote the development of green and low-carbon transportation. (Responsible units: Autonomous Region Market Supervision Bureau, Development and Reform Commission, State-owned Assets Supervision and Administration Commission, five prefecture-level municipal people's governments, Ningdong Management Committee)

4. Effectively increase funding guidance

(XII) Implement a comprehensive reward and subsidy policy for stabilizing growth. Every year, cities, counties (districts), key enterprises, continuous production enterprises, and major projects that have been put into production and have achieved results that have made outstanding contributions to stabilizing growth in the previous year will be rewarded and subsidized according to their contribution rates. Industrial enterprises with fast growth and great contributions will be supported with interest subsidies for working capital loans. (Responsible units: Autonomous Region Department of Industry and Information Technology, Department of Finance)