New developments regarding the reform of the power sector

03 December 2015 – In March the state council had already issued rules to overhaul the electricity sector with the aim to allow market forces to play a bigger role in the allocation of resources. Last week the National Development and Reform Commission (NDRC) and the National Energy Agency (NEA) published six guidelines for the implementation of the reform. According to these guidelines Anhui, Hubei, Ningxia, Yunnan and Guizhou shall serve as pilot regions in addition to Shenzhen and Inner Mongolia. Furthermore, generators will be able to sell power to customers through regional power trading platforms and the reform also aims at establishing two national trading platforms. These will be established by the national power distributors State Grid and Southern Grid, a sign that they will keep their dominant position in the power sector, despite the introduction of market forces. A schedule for the reform was surprisingly not included in the guidelines.