China Electricity Regulatory Commission Reported Criticism on 142 Infrared Power Supply Enterprises

The State Electricity Regulatory Commission issued the "2011 Power Supply Supervision Report" in Beijing on the 20th. It has reportedly criticized 142 power supply companies for their violations in terms of power supply capacity, quality, service, market behavior, and cost, and required them to make rectification within a time limit. The report also proposed regulatory proposals to increase the construction of rural power grids, promote the separation of main businesses and multiple operations of power supply companies, and promote the reform of transmission and distribution systems.

According to Tan Rongji, spokesperson of the State Electricity Regulatory Commission, the power supply inspection sampled 215 of 2,951 power supply companies across the country, and found that 186 of them had 492 cases of various types of problems. The “Report” named 142 companies in question.

Among them, Inner Mongolia Erdos Electric Power Bureau, Shanxi Didian Wugong County Power Supply Company, Xinjiang Tianfu Thermal Power Company Limited, Shaanxi Dielectric Nanzheng County Power Supply Company, Gansu Zhangye Gaotai County Electric Power Bureau, Hunan Shaoyang Electric Power Bureau, Lanzhou, Gansu Province The Power Supply Bureau of the Suizhong County Agricultural Power Administration Bureau and the Guizhou Anshun Puding Power Supply Bureau violated the regulations and caused serious consequences. The electric power regulatory authorities issued warnings, criticisms, and other treatment to relevant persons in charge according to law.

He introduced that there are five major problems in these power supply companies:

First, the investment in the distribution network in some areas is insufficient, and the power supply capacity is insufficient. Especially the facilities in the rural power grid are obsolete, and it is difficult to adapt to the requirements of the new rural construction;

Second, the problem of power supply quality is still relatively prominent, resulting in low voltage for some users. Some power supply companies even have statistics on fraudulence and false acceptance rate of power supply reliability;

Third, there is still a gap between national standards and emergency services such as emergency service time reaching beyond the specified time limit, non-standard user complaint handling, etc.

Fourth, the openness of the power supply market is low, and the problem of setting up market barriers or service barriers still exists. Fifth, the calculation of power supply costs is not standardized and unrealistic. For example, the inflated power supply costs are out of scope and some of the expenses and expenditures do not comply with national regulations. The depreciation of fixed assets was not carried forward in a timely manner.

The State Electricity Regulatory Commission believes that efforts should be made to solve the problems such as the current lag in distribution network construction, the unreasonable distribution of power grids, the unreasonable distribution of power supply, and insufficient supply of electricity caused by coal and electricity contradictions. It is necessary to strengthen power science planning and promote synchronized and coordinated development of the power grid. In view of the problem that affiliated enterprises use the dominant position of the main industry to monopolize the engineering market for users, it is necessary to deepen the reform of the power system and promote the reform of the “main and more separate” power supply enterprises. In order to sort out the transmission and distribution costs, we must steadily advance the reform of the transmission and distribution system.