Electrical Equipment / Components & Telecoms

On July 29, the National Development and Reform Commission issued a new mechanism for time-of-use electricity prices, requiring localities to implement time-of-use electricity prices based on local conditions, improve the overall utilization efficiency of the power system, and promote green and low-carbon energy development.

The simple understanding of time-of-use electricity price is to price electricity by time period. The most typical time-of-use electricity price is the peak-to-valley electricity price that has been implemented in many places. The new time-of-use electricity price mechanism divides 24 hours a day into multiple periods such as peaks, peaks, flat sections, troughs, and deep troughs. The electricity prices are different in each period, and the electricity price difference between peaks and troughs is 3 to 4 times.

At the same time, in places where the daily electricity load or the relationship between electricity supply and demand has obvious seasonal differences, it is necessary to improve the seasonal electricity price mechanism. In places where hydropower and other renewable energy have a significant proportion, it is necessary to establish a sound price mechanism for high and low electricity, and reasonably determine the time period and the proportion of electricity price fluctuations.

According to experts, the new mechanism introduced this time further clarifies the scope of the time-of-use electricity price, and extends it to electricity users who implement industrial and commercial electricity prices except for the electric railway traction power specified by the state. For some general industrial and commercial electricity users who are not suitable for peak-shifting electricity consumption, the average electricity price can be studied and formulated, and the users can choose and implement it by themselves.