China is likely to further expand power transmission and distribution pricing reform pilots in 2016, reported the Economic Information Daily on Wednesday.
China's National Development and Reform Commission (NDRC) is expected to select five to 10 provincial power grids and one to two regional power grids as power transmission and distribution pricing reform pilots in 2016.
Meanwhile, the NDRC has required the current reform pilots to keep power transmission and distribution price within a reasonable level. If necessary, a transitional period can be granted to the pilots. At present, Shanxi Province, Shaanxi Province, Sichuan Province and Xinjiang Uygur Autonomous Region are actively applying for joining in the pilot program.
Insiders note that power transmission and distribution pricing reform has achieved remarkable results in some pilots. However, it has also encountered huge pressures, reflecting that many difficulties needed to be solved in the shift from government pricing to market pricing.
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