Main grid and main auxiliary separation stagnated for three years due to a decrease in importance

It was alleged that in September 2010, this scheme had been approved by the Power System Reform Working Group and was approved by the State Council in early 2011. At present, the SASAC is organizing preparatory work for the “separation of main and auxiliary services”. In the future, the survey, design, thermal power, hydropower, and transmission and distribution engineering companies under the power grid will all be stripped.

However, a Supervisor of the Electricity Regulatory Commission told this reporter that he did not receive the separation of main and auxiliary documents approved by the State Council. However, it stated that, according to the "Power System Reform Plan," separation and follow-up of main grid and auxiliary grids should be mainly "separation of power generation and diversification (ie, industries that are completely unrelated to electricity)," The separation of survey and design, thermal power, hydropower, and transmission and distribution engineering companies did not match.

According to Lin Boqiang, director of the China Energy Research Center at Xiamen University, in terms of China's current power system, the "main and auxiliary separation" of the power grid is only the most feasible but "not important" reform.

Three years of stagnation

In 2002, the State Council’s "Power System Reform Program" proposed that the ultimate goal of power reform is to build a government-regulated power market system with separate government and enterprises, fair competition, an orderly, and healthy development, and summarize them into four specific directions. : The factory network is separated, the main and auxiliary are separated, the transmission and distribution are separated, and the bidding price is online.

Afterwards, under the guidance of the “Electric Power System Reform Program”, the State Power Corporation was split into two power grid companies (State Grid, China Southern Power Grid) and five power generation groups (Hua Neng Group, Datang Group, Huadian Group, Guodian Group, China Power Investment Group) and 4 subsidiary groups (China Power Engineering Consulting Group, China Hydropower Engineering Consulting Group, China Water Conservancy & Hydropower Construction Group, China Gezhouba Group).

However, apart from “separation of plant and network,” the other three major reforms have not achieved a substantial breakthrough. The power grid company that inherited most of the assets of the State Power Corporation has become the focus of the next power reform.

In the “Power System Reform Plan” of 2002, “Separation of Main and Auxiliary” was specifically defined as the adjustment and reorganization of the auxiliary business units and "triple production" and diversified operating companies owned by the current national electric power company system. In other words, after the plant network is separated, auxiliary business units such as electric power design, repair and construction owned by the power grid company, “triple production” and diversified business enterprises are all “auxiliary industries”.

According to the "Separation of Main Grid and Auxiliary Power Grid Reform and Integration of Power Design and Construction Companies" led by SASAC at the end of 2007, the above assets will be stripped from the grid company and merged into two major powers: China Power Engineering Group and China Electric Power Construction Group. Auxiliary industry group.

The two subsidiary groups will be restructured by China Electric Power Consulting Group, China Hydropower Consultant Group, China Hydropower Construction Group and China Gezhouba Group.

However, at the end of 2004, after the National Power Reform Leading Group reported the first main and auxiliary separation reform plan, “Implementation Opinions for the Separation of Main and Auxiliary Power Reforms,” to the decision-making level, it eventually stalled due to the “electricity shortage”. At the end of 2007, the SASAC launched the “Separation Reform of Main Grid and Auxiliary Power Grid, Integration of Electric Power Design and Construction Enterprises”, but in 2008, due to extensive damage to electric equipment caused by extensive rain, snow, and freezing disasters in the south, the plan was shelved again. There are 3 years.

Auxiliary business boundary

"Now, who can say clearly what is the auxiliary power grid?" Lin Boqiang said. In the process of "separation of main and auxiliary grids," how to clearly define the "main business" and "auxiliary business" of grid companies is always a problem.

At present, the main auxiliary industries of the State Grid include 9.2 million kilowatts of power generation assets, the State Grid Power Academy, and the China Electric Power Academy. One of the important assets under the China Electric Power Academy is the 60% stake in XJ Group, a power equipment company.

According to the official website of the State Grid, its non-grid assets include Yingda Media Investment Group, Yingdae and Property Insurance, Yingdae and Life Insurance, Yingda International Trust, Yingda Securities and Yingda Futures.

“Now, the auxiliary assets of the power grid are much larger than in the past and the scope is much wider. Moreover, these assets are still the assets agreed upon by relevant ministries and commissions after the start of power reform in 2002. “Lin Boqiang said that after the grid became bigger and stronger, the status of the main and auxiliary has been far from 2002.

"The latest main and auxiliary separation plan should be in the same general direction as the previous plan, but it may also have some changes.

For example, transmission and distribution engineering companies (may not be stripped). Lin Boqiang said that in the snow and ice disaster that occurred in 2008, most of the power industry believed that it was extremely important for power grid enterprises to retain transmission and distribution project construction companies to ensure the safe operation of the power grid.

“It is not impossible for the power grid to serve as an auxiliary business. In fact, many foreign power grid companies are doing auxiliary businesses. After all, the fertilizer companies don’t flow into foreign lands. But foreign power grid companies are private enterprises that are not state-owned enterprises. : The secondary industry can not rely on the main business to become a monopoly; the secondary industry must make money.” Lin Boqiang said.

However, the real problem is that, regardless of the main and auxiliary, the grid company will “set multiple functions such as standard formulation, equipment manufacturing, procurement, bidding, etc.” and it is difficult to monitor the interest relationship among them.

In July 2009, State Grid acquired Pinggao Group and XJ Group, becoming the largest power equipment manufacturer in China. It was once publicly criticized by the China Machinery Industry Federation, claiming that this move by the State Grid would not be conducive to a fair and just competition mechanism. It is also not conducive to the overall competitiveness of China's electrical manufacturing industry.

The most realistic reform

"The decline in importance is the reason why the separation of the main grid and the auxiliary grid has been delayed for a long time." Lin Boqiang said, "After the completion of the reform of state-owned enterprises, the pressure for separation of main and auxiliary power systems has become smaller." Because of the original medical care, education, etc. Social units have been stripped, and the burden on power companies has become lighter. The auxiliary industry is no longer an obstacle to the development of the company.

“In the entire power system reform, the reason why we choose to promote the separation between the main and the auxiliary may be simply because we can only carry out reforms in this area.” In his opinion, the power system needs to be resolved more than the separation between the main and auxiliary industries. The issue of “electricity price” is the precondition for power reform.

“Without market-oriented electricity prices, system reforms will only develop in the deformed form. Now, whether it is on-grid tariffs, or sales tariffs, or even new power stations must be approved above. Power systems lacking market regulation mechanisms cannot achieve substantial results. The results of the reform.In this case, the separation between the main and the auxiliary may be the same as the power reform in the past. It eventually turned from a bloated subject to multiple bloated subjects." Lin Boqiang said.

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