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Electric Power System + State-Owned Assets, State-Owned Enterprises, "Double Promotion," How Does State Grid Change?

Electric Power System + State-Owned Assets, State-Owned Enterprises, "Double Promotion," How Does State Grid Change?

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[Abstract]:
Sincethe18thNationalPartyCongress,thedeepeningreformshavebrokentheiceforward.Withtheadvancementofpowergridenterprisereforms,thecontradictionsandproblemsfacedbythepowergridcompaniesarecomplexandcomplic
Since the 18th National Party Congress, the deepening reforms have broken the ice forward. With the advancement of power grid enterprise reforms, the contradictions and problems faced by the power grid companies are complex and complicated, and companies are increasingly required to have the courage to take hard decisions and the courage of the soldiers to break their wrists.
 
With the new round of reform of the power system and the reform of state-owned assets and state-owned enterprises,  the State Grid Corporation has established a power trading platform, slimmed down health, improved quality and efficiency, actively nurtured emerging businesses, and vigorously served the “Belt and Road” initiative. While doing its own reforms, Actively serving and promoting related fields has gradually become an important force for implementing structural reform on the energy supply side.
 
It is easy to see that with the reform of the power system to release the vitality of state-owned enterprises and the reform of state-owned assets and state-owned enterprises to promote the benefits of the power system reform, the State Grid has embarked on a road to both development quality and efficiency, providing strong support for the revitalization of the real economy.
 
Power reforms release dividends
 
The focus of the new round of power system reform is to build a unified, open, competitive and orderly power market system, restore the attributes of electric power products, and give full play to the decisive role of the market in resource allocation. Therefore, according to the approval of the National Development and Reform Commission and the local government, the State Grid has fully established a state-level power trading center and 27 provincial-level power trading centers, withdraw its internal trading department and realize the independent operation of the trading company.
 
The registration of market entities has fully realized “one-site registration and information sharing”. Currently, there are nearly 45,000 registered market entities, including 1,700 registered and sold power companies. The system of the market management committee of the Beijing Power Trading Center has been gradually improved, and the negotiation and deliberation mechanism of all parties in the market has been initially established.
 
The establishment of the platform has effectively boosted the scale of market-oriented transactions. According to statistics, from January to August in 2017, the market-oriented electricity transaction volume was 703.4 billion kWh, an increase of 51% year-on-year, of which the intra-provincial market transaction power was 553.1 billion kWh, an increase of 56% year-on-year, and the inter-provincial market transaction power was 150.3 billion kWh. , an increase of more than 37% year-on-year, effectively promoting a wide range of energy resources to optimize the allocation.
 
In addition, the State Grid has strictly implemented the provincial transmission and distribution tariffs and national price policies that have been approved, and the user energy cost has been effectively reduced. Cancel the surcharge of urban public utilities in the electricity tariff, reduce the electricity tariff of industrial and commercial users by 28 billion yuan; cancel the electricity tariff of electric railway repayment by 5.2 billion yuan; the price of transmission and distribution after the reform will save users annual electricity expenditure by more than 17.8 billion yuan; annual direct transaction electricity With the expansion of scale, it is expected to reduce the user energy cost by more than 18 billion yuan. Throughout 2017, it is expected to reduce user spending by about 70 billion yuan.
 
Slim fitness and efficiency upgrade
 
Enhancing the core competitiveness of the main business, improving the operational efficiency of the company, and realizing the maintenance and appreciation of state-owned capital are the fundamental objectives of the slimming and strengthening of the central enterprises. To this end, the National Grid focuses on the "three go ones and one supplement" and "guarantee growth" goals, and overall arrangements for quality and efficiency, slimming and fitness and other reform work, and lay a solid battle for quality and efficiency.
 
Improve business performance, and vigorously increase revenues and reduce expenditures. In the aspect of throttling, the State Grid has improved its investment budget management system for construction projects, saving 40 billion yuan in funds each year; comprehensively raising the standard cost management level, and saving production and operating costs by 10 billion yuan annually. In terms of open source, China National Grid actively develops the “Internet+” business and accelerates the development of power customer billing, energy B2B and other businesses. On this basis, the national grid's debt ratio in 2016 fell to 55.9%, which is the best among the world's top 500 peers.
 
In addition, the State Grid adheres to the direction of intensification, flattening, and specialization, deepens internal restructuring and integration, and strives to promote physical fitness. As of August 2017, 390 county companies completed "sub-divisions," and the total number of legal persons at all levels decreased by 437, and the power grid business basically achieved two levels of corporate and tertiary management.
 
According to State Grid, by the end of November 2017, the State Grid Corporation of China and 33 second-tier corporate reforms will be fully completed, laying a solid foundation for further improving the corporate governance structure and transforming the company's development approach.