According to the National Development and Reform Commission website news, Development and Reform Commission pointed out recently that the next step, the NDRC will improve price mechanism mainly determined by the market as a goal, deepen the price reform, enhance the regulatory price and service levels to new heights, with emphasis on deepening electricity, gas,instrumentation, oil and other resource price reform.
NDRC pointed out that the price mechanism is the core of the market mechanism. Innovative price mechanism is not only an important measure to strengthen the demand side management, but the key to promote the supply-side structural reforms. Since 2015, the NDRC has accelerated price reform, proactively and flexibly used price leverage, steadily and orderly launched a series of price policy measures, making remarkable achievements in stimulating the vitality of the market, promoting structural adjustment, reducing enterprise cost, as well as optimizing the pricing environment.
First, stimulate the vitality of the market.
- open more than 40 government pricing fields including the vast majority of drugs, most professional services, the competitive part of the field of transport and postal services, central and local government pricing programs were cut about 80% and 55 % respectively.
b. Tianjin is the first to start pilot power transmission and distribution pricing reform, and extend the pilot to 18 provincial power grids including Anhui, Hubei, Ningxia, Yunnan, Guizhou and other provinces as well as regional power grid in North China.
c. to further improve the refined oil pricing mechanism, set the lower limit of price regulation, simplify the price adjustment mode of operation, and release the LPG ex-factory price.
d. to merge non-resident stock gas price and incremental gas price, fully rationalize non-residentgasprices.
e. summary pilot experience in 27 provinces and 80 counties to further promote the comprehensive reform of agricultural water price.
f. steadily promote pilot reform in cotton and soybean target price, early release target price level, effectively stabilize market expectations, in favor of farmers in making reasonable arrangements for production.
g. to straighten out the country’s rail freight prices in accordance with the principle of maintaining reasonable price relations with road freight, establish mechanism of price fluctuations, playing an important role in promoting railway transport enterprises to change their concept of operations, flexibly respond to changes in market supply and demand, and better meet the needs of society.
Second, promote structural adjustment.
a. to Implement differential electricity prices for high energy-consuming industries such as calcium carbide and ferroalloy, as well as ladder price of electricity based on consumption levels for cement and electrolytic aluminum production enterprises
b. to implement on-grid power tariff for coal-fired power plant with ultralow emissions, promoting clean and efficient use of coal, and energy-saving emission reduction and air pollution control.
c. to make use of on-grid power tariff for coal-fired units to reduce power tariff space, increase renewable energy additional criteria, adjust internet benchmark price for resource areas of wind power and photovoltaic power generation, promote the healthy development of renewable energy, as well as guide the transformation of energy.
d. to guide rational adjustment of the sewage treatment fees, include sludge disposal costs in the sewage treatment costs, implementing the differentiated pricing policies, and improving the sewage treatment capacity.
e. to guide rational discharge fee collection standard for volatile organic compounds (VOCs) in oil chemical industry, packaging, printing and other pilot sectors, and gradually adjust to almost the same level with the main air pollutants sewage charges.
Third, reducing business costs.
a. significant reduction in electricity prices twice, April 2015, on-grid power tariff and commercial and industrial selling power price have dropped about 2 cents, 1.8 cents per kWh respectively on average; in January 2016, further reducing on-grid price and general commercial and industrial electricity prices by about 3 cents, totally reducing the about 90 billion yuan burden on businesses.
b. November 2015, the price of natural gas gate stations for non-residents was significantly reduced 0.7 yuan per cubic meter, directly reducing the downstream burden of more than 43 billion yuan per year. In 2015, adjustments ( 12 down 7 up ) of domestic gasoline and diesel retail prices was made for 19 times, lowering domestic gasoline and diesel retail prices to 670 yuan and 345 yuan per ton respectively compared with that at the beginning of the year, reducing the burden of over 120 billion yuan on the oil industry.
c. to improve swipe fee pricing mechanism, significantly lower rate level from September 2016, reducing the cost of commercial circulation enterprise of about 7.4 billion yuan per year.
d. Import and export links clear specification charges, clearing charges involving shipping companies along the Yangtze River, and Central Trains immigration charges , canceling harbor dues and other seven administrative fees, improving the ship charges and port facility security fee charging policy, introducing new ” Port Charges Billing Approach”. The introduction of these policy measures reduce the burden on related businesses of about 70 billion yuan, further enhancing the transparency of fees and costs and significantly specifying the charging order.
e. to further clean up and specify administrative charges, reducing 12 charges of six sectors, annual relief amounting to 4 billion yuan.
Fourth.optimize the price environment.
a. to clean up the administrative examination and approval service pre-charge, currently Central Government level has not implemented business administrative pre-approval service charges involving government pricing management.
b. to realize the list management for all administrative fees and Government pricing business service charges.
c. since January 2016，removing the license fee system, simplifying management processes, facilitating collection enforcement units, as well as innovating supervision ways during and after the matter, establishing the charging unit revenue and expenditure reporting system, as well as evaluation system after the implementation of the charging policy.
d. to comprehensively clear and standardize intermediary service fees in administrative examination and approval, promote the intermediary market-oriented reforms, establish strict government pricing or incorporate administrative approval intermediary service charges into administrative fees management, and make strict examination and approval fees standards.
e. to carry out one-year ticket prices campaign work to further standardize ticket prices, and maintain normal price order.
NDRC pointed out that the next step is under the State Council “to delegate power, improve regulation and optimize services” reform requirements to improve price mechanism mainly determined by the market as a goal, deepen the price reform, enhance the regulatory price and service levels to new heights, with emphasis on deepening price reform in electricity, gas, health care, transportation and other areas, further liberalization of the competitive part of the price.
Reform environmentally-friendly electricity price subsidies ways and improve renewable energy price formation mechanisms and subsidies methods to further implementation of differential pricing policy based on unit energy consumption in overcapacity industry. A system of progressive pricing for water consumption that exceeds quotas will be put into full practice. Speed up the formulation or revision of price laws and regulations, improve government pricing rules, market regulation and price hearing approaches, as well as enhance the cost supervision and examination. Speed up the informatization construction of price to strengthen price monitoring and early warning and situation analysis, raising the price of public services. Through innovative pricing mechanisms, give full play to the price leverage, promoting the supply side structural reform.