A "Notice" triggered a dispute over "high energy consumption". Which users can enjoy preferential electricity prices?

During the COVID-19 epidemic, in order to support enterprises to resume work and production and tide over the difficulties, the National Development and Reform Commission issued the "Notice on Phased Reduction of Enterprise Electricity Costs to Support Enterprises to Resume Work and Production". From February 1 to June 30, the electricity price will be uniformly settled at 95% of the original household electricity price level. The preferential coverage covers power users who implement general industrial and commercial and other electricity prices and large industrial electricity prices, except for high-energy-consuming industries.

Which users can enjoy preferential electricity prices? Under certain conditions, can the definition of high-energy-consuming industries be appropriately adjusted? After upgrading and transformation, the energy consumption level of some enterprises has reached international advanced levels. Can the label of "high-energy consumption" be removed? As soon as the above policy was released, it quickly caused controversy in the industry.

In response to this, the National Development and Reform Commission recently issued a supplementary letter on clarifying the implementation of the policy of phased reduction of electricity costs, further clarifying the scope of high-energy-consuming industries. In addition to the six major industries of petroleum, coal and other fuel processing industries, electricity, heat production and supply industries, other industrial users and all commercial users can enjoy preferential treatment. The focus behind the "high energy consumption" controversy is worthy of attention.

(Text丨Reporter Zhu Yan)

Industry associations in many provinces jointly apply for "reducing electricity prices"

"In the face of a complex and severe situation, fertilizer companies in various provinces did not wait or rely on others, but promptly restored and released fertilizer production capacity, fulfilling their social responsibility to ensure the supply of fertilizers for spring farming. At the same time, many fertilizer companies increased the proportion of chemical products in their transformation and upgrading, and donated a large number of epidemic prevention materials such as hydrogen peroxide and sodium hypochlorite during the epidemic. In order to support agricultural spring farming production, it is specially recommended to implement a phased price reduction policy for electricity consumption of fertilizer production enterprises." Recently, the reporter learned of a "Report on Applying for a Phased Reduction in Electricity Consumption for Fertilizer Enterprises". The industry associations of six provinces, including the Shandong Fertilizer and Coal Chemical Industry Association and the Shanxi Chemical Industry Association, jointly wrote to the National Development and Reform Commission and the Ministry of Industry and Information Technology.

As a traditional high-energy-consuming industry, fertilizer companies cannot enjoy the phased preferential electricity prices. In addition to the need to ensure supply, the above application also believes that "most fertilizer companies in the six provinces of Jiangsu, Shandong, Henan, Hebei, Shanxi and Anhui, and even the whole country, use coal as raw material. Although coal is an energy source, for fertilizer production companies including urea, coal is only used as a production raw material, not a fuel, and should not be counted as energy consumption."

The heads of several chemical companies also told reporters that after years of technological upgrades and energy-saving transformation, the unit energy consumption of the fertilizer industry has dropped significantly. In particular, leading enterprises, although using coal as raw material, can achieve clean and efficient use of coal through clean gasification, multi-product co-production, energy conservation and emission reduction measures. Some companies have also been selected into the list of energy consumption "leaders" recognized by the state. "I think it is unreasonable to not be able to enjoy the same preferential treatment just because of the 'high energy consumption' label without looking at the specific indicators." said the head of a chemical company in Shandong.

Shortly after the above report was issued, the Henan Petroleum and Chemical Industry Association also submitted an application, pleading for a phased preferential electricity price policy for chlor-alkali enterprises. Since electricity costs account for more than 60%, the level of electricity prices is directly related to corporate benefits. "During the epidemic, many companies overcame difficulties and worked overtime to produce disinfection supplies to maximize the needs of epidemic prevention. In addition, the energy consumption levels and emission standards of many chlor-alkali companies in Henan and China are already in a world-leading position. Although it is a high-energy-consuming industry, if it cannot be distinguished according to actual conditions, it will be extremely disadvantageous to companies on the front line of epidemic prevention and supply guarantee." Zhao Baojun, vice president of the association, said.

High energy-consuming enterprises should not be treated in a one-size-fits-all manner

As of press time, the above application has not received a response. However, the National Development and Reform Commission has further clarified the high-energy-consuming industries referred to in the "Notice" through public letters, including oil, coal and other fuel processing industries, chemical raw materials and chemical products manufacturing industries, non-metallic mineral products industries, ferrous metal smelting and rolling processing industries, non-ferrous metal smelting and rolling processing industries, and electricity, heat production and supply industries. In the view of many industry insiders, behind the controversy, it also exposes the reality that the management of high-energy-consuming industries is "imprecise" and "undetailed."

The reporter learned that from the national to local level, high-energy-consuming industries are not only the focus of administrative approval and supervision, but also the difficulty of upgrading and transformation. Differentiated electricity prices, tiered electricity prices, delayed approval and limited approval have become long-term means of implementing management.

"There is nothing wrong with clarifying the scope of high-energy-consuming industries and making them the key management targets for energy conservation and consumption reduction. These measures should strictly constrain high-energy-consuming industries. But when it comes to specific segments and companies, it is unfair to blindly put hats and labels on them," said Mao Tao, director of the Institute of Energy, Resources and Environment at the International Economic and Technical Cooperation Center of the Ministry of Industry and Information Technology.

Mao Tao believes that with the advancement of technology and the upgrading of technology, the higher the level of energy management of enterprises, the lower the energy consumption per unit product, and the advanced nature and leading role of industry benchmark enterprises should not be denied. "For example, the Ministry of Industry and Information Technology regularly conducts 'green factory' assessments, which takes energy consumption as one of the key indicators. For high-energy-consuming industries, if the energy consumption level of enterprises reaches or exceeds the advanced value of the corresponding national energy consumption limit standard in principle, they can also enjoy preferential financing support and be exempted from peak production management."

Li Zuojun, deputy director of the Institute of Resources and Environmental Policy at the Development Research Center of the State Council, believes that one of the main reasons for the controversy is that the existing policies are not precise enough and the management is not targeted enough. Standards formulated in a specific period of time reflect the situation at that time or within a period of time, but may not cover dynamic changes. With the adjustment of industry structure, standards and systems should also be adjusted adaptively according to actual conditions.

"As technology and processes continue to advance, how should energy consumption constraint indicators be adjusted accordingly? In the same industry, energy consumption levels vary in different segments, different companies, and even different links. How should management differentiate them?" Li Zuojun gave an example.

Energy efficiency management and economic development are not "opposites"

How to further improve the management of high-energy-consuming industries? Xu Bijiu, director of the General Department of the Ministry of Ecology and Environment, said that first of all, it should be made clear that as a key governance target, high-energy-consuming industries have not been restricted, but have maintained a relatively fast growth rate.

Xu Bijiu provided a set of data to reporters: From January to November 2019, in terms of industrial added value, the country's high-energy-consuming industries maintained a relatively stable growth. The added value of nonferrous metals, steel, building materials, and electric power industries are significantly higher than the national industrial average growth rate of 5.6%. In terms of product output, the country's crude steel, ethylene, coke, cement, and flat glass increased by 7.0%, 9.3%, 5.9%, 6.1%, and 6.9% year-on-year, respectively. In key areas, the growth momentum of product output in high-energy-consuming industries is obvious. For example, the coke output in Shandong and Shaanxi increased by 24.8% and 21.9% year-on-year, respectively. "Whether from the perspective of subjective wishes or actual results, the two are positively correlated, not non-opposites."