Transmission and Distribution Prices in Direct Transaction Trial between TNMG and Power Plants Approved - SERC

The direct transaction trial between TNMG and GTXD was officially approved in a document issued by the SERC. According to a press release on the SERC website, transmission and distribution prices for this direct transaction are as follows: the basic price of Large Plant Industrial Power will apply to the basic power price,and the energy price will be RMB0.150 per kWH - RMB0.129 per kWH for 110kV users and RMB0.109 per kWH for 220kV users. Last October, the trial plan for direct transactions between Lushun Aluminum and CHNG Yimin Power Plant was approved, indicating the official start of the direct transaction trial between power users and power plants. In November,the SERC approved trial plans submitted by Fujian and Gansu power plants, in which the basic power price remained unchanged and energy prices changed. In March, China’s government made it clear for the first time that 20% of the power market would be open for large industrial users of 110kV and above, encouraging direct transactions and price negotiation.