Expert's point of view The incremental distribution reform has entered the accelerated landing stage
Source: China Electric News Network Date: 19.03.25
               Incremental power distribution reform enters the accelerated landing stage
Yang Sumi
      Not long ago, the state introduced two intensive policies, the incremental distribution reform injected two injection "strong heart." On December 19, 2018, the reporting of the fourth batch of pilot projects was launched, and on the basis of the fact that the total coverage of cities above the prefecture level has basically been achieved, the pilot will be extended to counties. On January 7, 2019, the National Development and Reform Commission and the National Energy Administration issued the "Notice on Further Advancing the Reform of the Incremental Distribution Service." The document broadens the scope of incremental power distribution reform, clarifies the requirements for price approval and connection of incremental power distribution networks, and further improves the policy system for incremental power distribution reform. At the same time, in November 2018, the State Grid Company carried out research and supervision of the incremental power distribution reform work, and actively promoted the implementation of the incremental power distribution service reform pilot project.
         In 2019, incremental power distribution reform will usher in a new chapter and enter the accelerated landing stage.
Incremental distribution release
Generate new forms of business, new changes
        With the acceleration of incremental power distribution reform, a number of market-oriented distribution companies will be established. As the end of the power grid, the distribution network is directly connected to thousands of households. The distribution company will control a large number of customer resources. "Customers are the first productive force." With the Advancement of Internet +, artificial intelligence and other technologies, in-depth exploration of customer value, and continuous innovation of business models are the development direction of future distribution companies. In the future, power distribution companies will not only supply power to customers, but also explore value-added services and comprehensive energy services through innovative business models, expand profit space, and promote the innovative development of distribution networks. For example, incremental power distribution can be organically combined with new elements such as distributed energy, integrated energy services, and new forms of business to provide flexible, diverse, and timely power supply services around the needs of park users. We will expand the planning, construction, operation and management of heating, water supply, gas and other infrastructure within industrial parks, provide comprehensive energy services, extend the service value chain, and increase operating profits.
Diversification of investment entities will also collide with new sparks in the distribution field. At present, under the background of the reform of mixed ownership of state-owned enterprises, power network companies, local state-owned enterprises, and private enterprises will cooperate to jointly establish incremental distribution companies to achieve win-win results. First of all, the hybrid ownership incremental distribution company can bring into play the advantages of technology and management of power grid enterprises, effectively reduce the cost of power supply and investment risk, but also have the advantages of social capital flexibility. Second, cooperation between social capital and state capital can enlarge the function of state capital, promote grid enterprises to further improve operating efficiency, and achieve the common goals of state-owned enterprises 'reform of mixed ownership and power reform.
        In the future, new technology and new management ecology will promote the cross-integration of different industries and different capital, and multi-integration has become an important development trend.
Distribution company
Need to have five major capabilities
        With the Advancement of the pilot work, incremental power distribution companies will gradually enter the stage of substantive operation. How can they stand in an invincible position in the market competition and expand their profit space on the basis of ensuring the safety and stability of users 'power supply? Need to have a certain degree of market competitiveness, professional ability, customer service ability, business development ability and adaptive regulatory ability.
       Market competitiveness. Incremental distribution business is a regulated business, but also has many market-oriented characteristics, including price competition in the bidding process, interregional scale competition in the operation process, and competition in the development of market-oriented business. Distribution companies should adhere to market and standardized operation. Marketization means that as an independent legal person, it operates independently and bears its own profits and losses in accordance with the marketization method. Normalization refers to the establishment of a scientific and standardized modern enterprise system, which operates strictly in accordance with the norms of the company's articles of association. Different investors participate in enterprise governance through shareholders 'conferences and board of directors, achieve standardized operations, and improve quality and efficiency in the distribution chain. We will continue to improve the efficiency of distribution network operations and the level of power supply services. Improve customer service ability by expanding market services in the sales link.
After participating in the spot market, it is also necessary to have market bidding ability.
Professional maintenance capability. The distribution company needs to have professional experience in distribution and maintenance, meet unified technical and service standards in the operation of construction, transportation and inspection, marketing, etc., and ensure the safe operation of large power grids and quality services. Pilot tenders are subject to complex and stringent technical standards. Specifically related to the project construction technical requirements, power supply reliability requirements, power supply facilities technical specifications requirements, project owners 'emergency support capabilities, project owners' power supply service capabilities, etc., the entry threshold is high. It can be commissioned and operated in a market-based manner. At the beginning of the operation of the distribution company, due to the constraints of personnel and qualifications, the distribution network related business can be entrusted and operated through a market-based approach, reducing its own operating costs, solving the problem of lack of technology and experience, and at the same time making maximum use of existing resources. Ensure the smooth start of distribution business.
        Customer service capability. Distribution companies need to provide users with high-quality power supply services, vigorously explore the market, actively strive for large users, strengthen customer relationship management capabilities, establish a stable supply and demand relationship, and improve customer satisfaction. Through advanced technology to improve quality and efficiency, reduce distribution costs. If excavating the potential of intelligent electrometer non-metrological function, make fault prediction; Based on large data analysis, user phase recognition is carried out to prevent voltage quality events such as low voltage or overvoltage, single-phase circuit overload or transformer overload. Actively participate in the marketing sales business and implement flexible marketing strategies. According to the forecast of customer load scale, combined with the analysis of supply and demand situation, price trend, the purchasing power decision is made. Considering the characteristics of the user's attributes, the characteristics of the electricity consumption behavior, the price elasticity, and the stability of the reasonable setting of the package plan.
       Business development capability. In order for distribution companies to take full initiative and continue to develop in a participatory pattern, they must, on the basis of strengthening the quality and efficiency of traditional distribution services, cultivate the ability of emerging business markets to expand and build a shared service platform with energy as its link. Building an energy-win-win ecosystem centered on electricity.
       Adaptive regulatory capacity. In the course of operation, distribution companies need to adhere to compliance with the law, study the government's regulatory requirements for incremental distribution services, and put forward countermeasures to adapt enterprises to scientific regulatory requirements, and standardize internal management. We will resolutely abide by relevant policies and conduct business in accordance with the law. A power generation enterprise and its capital shall not participate in the investment in the construction of a special line directly supplying power to the user by a power plant, nor shall it participate in the investment in the construction of a special line connected to the incremental distribution network of the power plant in which it participates. It is forbidden to convert public power plants into self-owned power plants. Fulfill the relevant obligations in accordance with the responsibilities. Social capital investment in incremental distribution network business and in charge of operation and management shall comply with the relevant technical standards of the state, while obtaining reasonable investment income, fulfill the obligations of safe and reliable power supply, basic power supply and general social services.  

Incremental power distribution reform