five changes

1. Electricity price composition

Before the adjustment, the electricity price for industrial and commercial users in Zhejiang was composed of: on-grid electricity price + transmission and distribution price + ancillary services + market profit and loss + government funds and surcharges, etc. From June 1st, it will be adjusted to the "5+1" model: "5" refers to the on-grid electricity price + transmission and distribution price + online link loss cost + system operating cost + government funds and surcharges, etc., "1" refers to the current compliance with Other fees required by policy and actually charged.

The projects that have changed before and after comparison are actually split and reintegrated from the original projects. For example, the line loss costs and part of the system operating costs originally included in the transmission and distribution price are listed separately and regrouped into the new five-item electricity price composition.

The actual composition of electricity prices has not increased. Just like redistributing items in multiple drawers to make the "commodity price" and "shipping cost" of electricity more clear.

2. Time-of-use electricity price execution method

The price of the transaction is formed based on a single price. That is to say, all monthly electricity will no longer be traded according to peak, peak, trough, and fixed prices, and retail user packages will be unified into single-price packages. Under the "single price" model, market liquidity is enhanced; the subject matter of market transactions is unified, which is conducive to enterprise price comparison and negotiation.

For retail users who implement time-of-use electricity prices, the most intuitive difference is that the retail contract no longer has three electricity prices: peak, peak and trough, but only one "single price". In view of the national regulations, time-of-use users should form a time-of-use settlement price according to the time-of-use floating ratio stipulated in the time-of-use electricity price policy. That is, when the user's final electricity bill is settled, the "single price" will be split according to the relevant policy requirements of Zhejiang Province's time-of-use electricity prices. Therefore, users will still see “peak, peak and valley” prices on the electricity bill list. Compared with the previous time-of-use electricity price model, this "single price" model is more concise and intuitive, the market price signal is more direct, and it is more convenient for electricity users to compare prices.

3. Realize electricity purchase at your fingertips

In 2024, in addition to signing retail contracts on the power trading platform (computer side), retail users can also complete the same operation through the mobile phone "Retail Platform Mobile" e-trading APP. The mobile terminal of Zhejiang Electric Power Retail Trading Platform has six distinctive functions, including price comparison and negotiation, policy inquiry, online signing, contract management, deviation reminder and market information interpretation.

Electricity users can enjoy many conveniences through mobile terminals:

One-click access to market information helps users collect various key data.

Filter electricity sales companies with one click, obtain quotation information from different electricity sales companies, understand the market conditions, and choose the electricity sales company that best suits you.

One-click signing function allows you to sign contracts directly with customers online, improving signing efficiency.

Users can also check the contract status on the mobile terminal at any time to facilitate timely renewal and changes.

4. Set caps and risk warning mechanisms for retail packages

In order to reduce the risk of market price fluctuations for users, a risk warning mechanism is added to provide warnings for packages that do not check the cap clause. After the warning is triggered, a 24-hour cooling-off period will be entered, and the trading platform will simultaneously generate a "Risk Notification". Users and electricity sales companies need to print and sign the "Risk Notification Letter" and then scan and upload it or electronically sign it online and upload it for final determination. During the 24-hour cooling-off period, you can reselect the package type and related terms.

If a retail user chooses the cap price clause, when the retail package price exceeds the retail cap price, the calculation will be based on the retail cap price; when the retail package price does not exceed the retail cap price, the calculation will be based on the retail package price.

Therefore, the electricity price for retail users can always implement the lower of the two, that is, the electricity price "will be low rather than high." This mechanism can effectively realize wholesale and retail price transmission and help users reduce the risk of market price fluctuations.

5. Smooth price transmission mechanism

The reference price of the retail package has changed from the original linkage monthly average transaction price to the linkage annual and monthly average transaction price. At the same time, the setting of the cap price has also been linked and modified to rise on the basis of (annual average transaction price * 0.8 + monthly average transaction price * 0.2). Retail users are no longer simply price takers or passive participants, but can choose from three packages: "fixed price", "proportional sharing" and "market price linkage" based on their own research and analysis of the electricity market. Find the package that suits you best and take the initiative in the market.

At the same time, a coal and electricity price linkage mechanism is established, the linkage formula is clarified qualitatively and quantitatively, and annual and monthly linkages are implemented. Each month is based on the annual price, and the coal and electricity price linkage is implemented based on the coal price of the month. Through linkage, it truly reflects the fluctuations in coal prices and truly realizes the "rising and falling" of electricity prices.

Four unchanged

1. Retail contract period

The current retail trading contract period on the trading platform shall not exceed one year (i.e. no later than December 31, 2024).

2. Market Entry Process of Market Entities

Power generation enterprises and power users participating in Zhejiang's electricity market transactions (except for users represented by electricity sales companies) must go through the market registration procedures on the power trading platform in accordance with the commitment, registration, and filing procedures. Electricity sales companies that have obtained trading qualifications must register. When doing so, a credit commitment letter should be signed in a fixed format and all materials required by the "Rules" should be submitted to the power trading institution through the power trading platform.

The procedures that power generation companies, power sales companies and power users need to complete to enter the power market have not changed from the previous year.

3. Wholesale market scope

As in 2023, industrial and commercial users with electricity voltage levels of 35 kV and above can choose to participate in wholesale electricity transactions as wholesale users according to their own circumstances, or as retail users sign a retail contract with an electricity sales company, and its agent will participate in electricity transactions. Retail Transactions.

4. The electricity bill issuance process remains unchanged.

For wholesale market settlement, the Zhejiang Electric Power Trading Center will issue settlement basis based on the wholesale market contract, winning bids, deviation assessment, etc., and each market entity will settle electricity bills with power grid companies based on the settlement basis.

For retail user electricity bill settlement, the power grid company calculates the retail transaction electricity bill based on the contract and binding relationship, retail package, green electricity price and other information transmitted by the power trading platform, as well as the meter reading power. After confirmation by the electricity sales company, the electricity on both sides is superimposed. After deviation fees, line loss fees in the Internet link, power transmission and distribution fees, system operation fees, government funds and surcharges, time-sharing users will form a time-sharing settlement price according to the floating ratio stipulated in the time-of-use electricity price policy, and form a total settlement price for retail users. For electricity bills, issue electricity bills for retail users.

In principle, power grid enterprises will push the market-based electricity bill information of retail users to the electricity sales company in batches before the 4th of every month for verification and confirmation. If there are any objections, the electricity sales company should provide feedback within 48 hours after receiving the electricity bill information. The fees payable by the electricity sales company in the wholesale market and the fees payable in the retail market are accounted for and settled separately.