A new power pricing mechanism that calculates costs of power transmission and distribution separately has been adopted for the power grid in west Inner Mongolia, an official from the Inner Mongolia Development and Reform Commission said on Friday.
The new pricing mechanism took effect on October 1. The move is hailed by many as a big step forward in China's ongoing power reform that seeks to introduce separate cost accounting for power transmission and distribution.
The power grid, often referred to as the Mengxi Grid, is operated by Inner Mongolia Power (Group) Co., Ltd. It is an independent provincial-level power transmission system. State Grid and China Southern Power Grid, China's two biggest power grid operators, currently use an accounting method that integrates costs of power transmission and distribution. They are also carrying out a few pilot projects on separate accounting.