The Ministry of Industry and Information Technology ("MIIT") has recently distributed the Circular on Organizing Third-party Assessment to Look into the Implementation of the Policies Aimed at Reducing the Power Price for General Industry and Commerce (the "Circular").
The Circular expressly states that, targets to be assessed are clients eligible for the power price for general industry and commerce and are mainly categorized into two groups. One group includes power grid settlement clients that have contractual relations with power grid enterprises, and the other group covers non-power grid settlement clients, including enterprises, business offices, and merchants within the building complex, situated in local industry parks. According to the Circular, price reduction measures to be assessed primarily include the power grid fee cancelation policy, the measure to promote the reform in prices of regional power grids and trans-provincial and cross-regional specialized power transmission, the policy to further regulate and lower fees regarding power grid processes, the policy to temporarily lower the power transmission and distribution prices, the policy to cut the value added tax rate for power grid processes and the return of uncredited value-added tax, the measure to increase the scale of trans-provincial and cross-regional power transactions, the policy to further lower the charge standard for the construction fund for national major water resource projects, and the policy to urge self-supply power plants to bear cross-subsidies for power prices.