Improve residents' ladder price system

The implementation of the residents' ladder price system since July 2012 has played a positive role in guiding residents to conserve electricity and use electricity. It has clearly embodied the “guaranteeing basic” reform concept and promoted social equity. In order to better leverage the role of price leverage in guiding residents' electricity consumption, and further improve the effectiveness of the ladder-based electricity price system, the National Development and Reform Commission recently issued the Notice on Improving the Residents' Ladder Price System (Development and Reform Price [2013] No. 2523). The relevant regulations were supplemented and improved.

The notice requires that all localities must combine the transformation of the old city and shantytowns, and increase the intensity of the “one household and one form” transformation of the residents' electricity. By the end of 2017, it will complete the transformation of more than 95% of the nation’s residents in total inventory and complete the meter reading. The power supply facilities for newly-built residential districts shall be built according to the “one household, one form” standard, and the power grid enterprises shall be responsible for operation and maintenance in a unified manner, and implement the ladder price system.

The notice pointed out that under the premise of maintaining a generally stable level of electricity prices for residents, the full implementation of peak-to-peak electricity prices for residential electricity consumption will be encouraged, and residents' users will be encouraged to participate in power shifts and peaks. The regions that have not yet introduced tariffs for peak-to-peak electricity prices for residents will be introduced before the end of 2015, and will be implemented by residents. The areas that have already been introduced should be adjusted and improved in a timely manner in accordance with the implementation status and changes in power load.

The circular made it clear that all localities should follow the principle of fairness and reasonableness, taking into account operability, improve measures and measures according to local conditions, and refine the methods of operation. To standardize the settlement of electricity charges for renting a house, the landlord must not increase the price of power for the tenants and disrupt the order of electricity prices. For issues such as “multi-family one-bedroom” and “one-family and multiple-population” issues, on the basis of communication and coordination, they can be properly handled through sub-line sub-tables or appropriate increase of electricity base to ensure the smooth implementation of residents' ladder price system.