The idea of "the purpose of the reform of the power system is to break the monopoly" is obviously wrong. Breaking monopoly is just a way to provide consumers and users with quality, inexpensive services and products, which is the purpose of developing market economy and developing basic industries.

Since the founding of national electricity company in 1997, China's electric power reform has gone through eighteen years. In the past 18 years, the reform of China's power management system was moving forward. This is difficult, it is difficult for people outside the industry to find out which industry reform will be as difficult as electricity.

In March this year, the promulgation of the "9 article" of electricity reform was a key step in the course of China's electricity reform, with the same value as a milestone. However, the electric power system reform China is still an unfinished, because some do not have to balance the interests, the power to change the 5 supporting documents are still intense game, delayed longer than expected back.

For the 18 years of reform, the next step how to do? Where is the direction of reform? How to correctly understand the reform of electric power industry to break the monopoly problem? High hopes for the power to change the No. 9 will be popular?

On these issues, China energy network specially compiled and edited the paper based on the speech delivered by Liu Jipeng and Professor Zeng Ming at the time of issuing and listing in the eighteen years' reflection and Prospect of "big ship turn around -- electricity reform". Professor Liu Jipeng as the electric power system reform is the earliest one of the participants, had witnessed all rise and fall of state power company, from No. 5 to the introduction of competition mechanism in generation side, "No. 9" put forward the power to change the ups and downs of electricity sales side of the market to promote reform. Following the China energy network, look at professor Liu Jipeng's review and Prospect of 18 years of electricity reform.

(1) why is it so difficult to change electricity?

The power reform has been in the past 18 years. The reason why the power reform is so difficult is in fact closely linked to its industrial characteristics. Among all the countries in the world, the two industries of electric power and railway are all closely related to the livelihood of the people, and are closely related to the strategic industry of the country. At the same time, it is also the two most sensitive department in the system reform, public ownership, private ownership, market - oriented, or national planning. So it's very difficult after the reform. Of course, I have just talked about the relevance of it to the national economy.

I was halfway decent, with my personal life, because my parents are in power system. I was a soldier before I went to college and came back as a worker. It was also a worker at the first power generation Shijingshan power plant in China. The Shijingshan power plant was the oldest power plant in the imperial palace of the Qing Dynasty. So from that time to start to have a understanding of the electricity.

When I participated in this reform in 1997, I put forward a view that "electricity is the first basic industry of the national economy". This is closely related to its basic, important, security and other characteristics.  Without electricity, we have nothing. It is important to say that the telegraph is important, and the phone can not be made without electricity.  And social stability is important, if there is no electricity at night in the city, even a big city like Losangeles, America, will be confused. So it's hard to imagine the power industry's impact on the national economy if there is a problem.

So why electricity reform is so complex, so difficult, 18 years haven't seen how to move, it is precisely this. Other reforms included coal, some of which were separated, and the boss of coal, and then we took it up. But the problem of electricity began in 2002, just because of its characteristics, from senior leadership to power industry and academia has great debates. Of course, the development of our electricity these years in the world is more successful. It is a more stable way of walking, which is also a point of view of why "big boats turn off". Great power accidents have occurred in the United States, Britain, Japan, India and Russia, but we haven't happened yet. Of course, it is more stable in the course of our reform and promotion, such as "the slow turn of the boat" is closely related.

But the industry must be marketed again. During its development, many of its reform experience will be progressively pushed forward on the basis of social security and stable operation on the basis of safeguarding national livelihood. It has the same nature as railway, and today's railways are still subsidized by many countries, but more and more people feel the importance of the railway.

There are many similar places in the nature of the two departments. For example, there are four links in the distribution of electricity and distribution. The same is the same as the railway, it has a network transportation is not to separate problems. Including the power grid, UHV power grid, China is the world's unique high voltage power grid. Strictly speaking, the UHV power grid is DC positive and negative exchange is one thousand eight hundred kilovolts, V.

We have high-speed railways on railways. These two items are the leading industries in the world today in the development of manufacturing industry, which are closely related to their system and national strategy. So in this background, the reform of electric power Chinese both for Chinese next monopoly industry forward, or we go out "The Belt and Road" strategy, to achieve Chinese rise.

I think railway and electricity are the two key links to guide China to the world. At the same time, its reform also affects the capital market, and the good stock in the stock market is much more related to the monopoly. Our car with the car China north and south, it is now the price of million people affected, is a monopoly. This price, I see a few news today, Mr Xi, Prime Minister Lee went to visit china. The development of the country includes the internationalization of us. I see today's prime minister Li Keqiang's two ocean strategy or high speed rail, so high speed rail is very important. Now we do not know that our national grid is also going out, Philippines power grid, we trust operation. The lines in Brazil are all building, Portugal and Europe.

Once the private electricity sale company is released, this is a good plate and investors should be worth paying attention to. Now Shenzhen has made the first place. In the same time, the reform of the power grid will have to be listed in the future. So the attention of this plate, in the reform and development of the mixed ownership system, is our favorite subject. In particular, Professor Zeng mentioned five suggestions and a guiding opinion on the reform of electricity. This is to talk about to deepen the reform of electricity immediately. Therefore, the various listed companies that are involved in the electric power plate are also noticeable in the field.

(2) the purpose of the reform is not to break the monopoly

The number nine of our article also has the diversification of the main body of the sale of electricity, like selling telephone cards, the sale of electricity. But what is the situation? Maybe we have released the electricity. We haven't produced electricity yet. It is the integration of power transmission, distribution and sale of electricity. In the middle of it is transmission and distribution. So, in the middle, it is the control of transmission and distribution. Then let go of the two sides, which is to release electricity and sell electricity.

So, why do we have to control the middle? It is one of the monopolies called natural monopoly. Natural monopoly in a sense, we now see the economics, simple understanding is a good monopoly, that is more than two. Because at this point can not be anyone to pull the power grid, if full liberalization, Mancheng will mess up the grid.

In terms of technical properties and characteristics, this link is regarded as a natural monopoly link in all countries. Of course, we think it is necessary to break the administrative monopoly. The price of electricity is approved by the national development and Reform Commission, which we think is administrative monopoly and should be competitive by the market. So, the problem of electricity price may also be raised.

The State Grid has just been mentioned, and many people say that the aim of the reform is to break the monopoly, which is obviously wrong. Breaking monopoly is just a way to provide consumers and users with quality, cheap and high-quality services and products, which is the purpose of developing market economy and developing basic industries. In order to break the monopoly, you monopolize this right here. But this is the link, that is, China's reform is facing an argument.

Now, although we put the power of release, but the electricity was sold to the national grid, and the grid is. The sales here are underwritten, and people think such a system is not as good as us to advance one step and control the middle. The country has to control it in the future. Because of this, but not on power price can go to competition. How do you compete? With big users and electric companies, manufacturers and big users will meet directly.

What is the big user? Like our building, a kindergarten, a school, the finance department, which are all big users. They can all connect with the power generation, who can give him cheaper electricity, and then go to the national grid, just like a high road. And state power grid, like we go to the airport to collect ten yuan at high speed, the ten money is determined by the state. So it's called the middle. Open the two sides, big users look for manufacturers, who is cheaper, who I want. How much money is charged at a fixed time. The end users will be able to use cheap electricity.

This is an exploration of the reform. So the national grid will need to give it the purchase mode, to receive wheeling mode. Here, it's two heads, and the two heads open directly. In this way, the natural loopholes of the market economy and the power grid are perfectly combined. Of course, why is there such a big argument in this?

One, including the UHV power grid. The characteristics of UHV power grid are combined according to the national conditions of China. Taking the Beijing Guangzhou line as an example, the Beijing and Guangzhou line takes Nandu as the load center of the electric power. Most of the electricity is in the south of the Beijing Guangzhou line. But the Beijing and Guangzhou line is north to the north? Most of the west is power generation, power supply. So China's hydropower needs to be transported from the West and China's wind power coming from Inner Mongolia. All of these require us to face the choice of long distance transmission. After resolving the time difference, we should stagger the peak of electricity consumption, which is an optimal allocation of power resources. However, this long distance transmission, with a general voltage level, is almost impossible, very wasteful, and the intermediate line loss. UHV has solved this problem. Therefore, the large market between large areas of China has formed a large market for electricity exchange. But the power grid, because of the long distance, across the large area.

Many people think that if we develop the national power grid, can we also demolish you later? But we have to ask why we have to dismantle the national grid, so that the State Grid can abandon the power generation and let the State Grid abandon the sale of electricity again. The number five issued in 2002 is to let the national grid give up power generation, No. nine, which is to let the State Grid give up the sale of electricity. Take the two links to compete. As to how the distribution of power distribution reform, we take a step to see one step. According to this situation, the four links of electricity, transmission, distribution and sale are combined with the so-called UHV power grid.

China is a country with a unified power management system, and it is possible to achieve such a large area dispatch. Our green energy, transportation of coal in a long distance is not as good as electricity delivery. So power delivery is a long-term national strategy to solve the problem of configuration. So this is a big topic.