China's power system reform broke again

On September 29th, Gezhouba issued a major announcement, which was issued by the parent companies China Gezhouba Group Corporation and China Power Engineering Consulting Group Corporation, and the State Grid Corporation of China and China Southern Power Grid Corporation (regions and cities) survey and design companies, thermal power construction companies, China Energy Construction Group Co., Ltd. (hereinafter referred to as China National Construction Group) established by hydropower construction companies and build companies was established on September 29, 2011.

Also announced on the same day are the four grids of the State Grid and Southern Power Grid companies Hebei, Jilin, Shanghai, Fujian, Jiangxi, Shandong, Henan, Hubei, Hainan, Chongqing, Sichuan, Guizhou, Qinghai, and Ningxia. City) The subsidiary companies of the company and the China Water Conservancy and Hydropower Construction Group, China Hydropower Engineering Consulting Group reorganization, the establishment of the establishment of the China Power Construction Group Co., Ltd. (hereinafter referred to as China Power Construction Group).

From the State Grid, China Southern Power Grid in Beijing, Tianjin, Shanxi and other 15 provinces (autonomous regions and municipalities) subsidiary companies and China Gezhouba Group, China Power Engineering Consulting Group was reorganized as China Energy Group.

In 2002, the State Council promulgated the “Power System Reform Plan”, which clarified the four major reform tasks of “separation of plant and network, separation of main and auxiliary facilities, separation and transmission, and bid-to-surf”. The first step was to split the national power company into two current power grid companies. , the structure of the five major power generation groups and four auxiliary industry groups. Among them, the four subsidiary groups are China Electric Power Engineering Consulting Group, China Hydropower Engineering Consulting Group, China Water Conservancy and Hydropower Construction Group, and China Gezhouba Group.

After the separation of the plant and the network, the separation of the main and the auxiliary should be carried out according to the direction of reform, and the auxiliary business units such as power design, repair, and construction owned by the power grid company should be stripped off, and the "triple production" and various business units should be "auxiliary business" to cut off the internal grid. The transmission channels of related transactions, accounting for the true cost of the grid, and then consider whether to separate the transmission and distribution, sales and distribution, and ultimately the formation of a market-based electricity pricing mechanism. However, after the completion of plant and network separation, the power system reform has been in a state of stagnation. Separation between the main and the auxiliary has become the biggest focus and difficulty of the power reform.

The establishment of China Power Construction Group and China National Construction Group means that the power system reform in China has once again broken through the ice and restarted after many years.

Gezhouba announced on the same day that in the third quarter of 2011, the company's newly signed contracts totaled RMB 13.267 billion, which was 18.95% of the newly signed contract value of RMB 70 billion for the year. The amount of new contracts signed during the first three quarters totaled RMB 63.587 billion, which is the annual plan. 90.83%.

On September 29, Gezhou Dam closed at 8.07 yuan, down 2.3%.

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