How to make up for the gap of 59.5 billion yuan in response

On February 22, the national development and Reform Commission (NDRC) issued a notice that the power consumption cost of enterprises was reduced in a phased manner, and enterprises were supported to return to work and return to production and overcome difficulties together. In total, the State Grid and China Southern Power Grid reduced and exempted about 59.5 billion yuan of electricity charges.

The national development and Reform Commission clearly pointed out that from February 1 to June 30, 2020, the electricity consumption cost of power users who have periodically reduced the field of high energy consuming occupation, now fulfill the general industrial and commercial and other electricity prices and large industrial electricity prices. When calculating the electricity charges of the above-mentioned power users (including those who have participated in the market transaction), the grid enterprises shall settle the accounts at 95% of the original household price.

Tell the decision, further clarify the implementation time of the supporting two-part tariff policy, and implement the supporting two-part tariff policy issued on February 7 to June 30, 2020.

The State Grid and China Southern Power Grid immediately issued policies in response to the notice of the national development and Reform Commission. State Grid issued eight actions to reduce the electricity fee of about 48.9 billion yuan, supporting large industries and general industrial and commercial enterprises, during which, 5% of the electricity fee of non high energy consuming large industrial enterprises was reduced, more than 400000 power customers were benefited, and more than 23 billion customers’ electricity fee was reduced; 5% of the electricity fee of non high energy consuming general industrial and commercial enterprises was reduced, more than 42 million power customers were benefited, and more than 42 million customers’ electricity fee was reduced More than 13.4 billion yuan; extend the implementation period of the “supporting two-part electricity price policy”, benefit more than 400000 power customers, and cut customer electricity cost by more than 12.5 billion yuan.

China Southern Power Grid has also issued five measures to implement the phased policy of reducing power consumption cost. From February 1 to June 30, 10.6 billion yuan of electricity fee will be reduced for general industrial, commercial and large industrial enterprises, and China Southern Power Grid will bear all the electricity fee reduction. During this period, the electricity cost of general industrial and commercial enterprises and large industrial enterprises, except for high energy consuming occupations, decreased by 5%, benefiting more than 7.6 million enterprises, and reducing the electricity cost of enterprises by about 7.4 billion yuan; implementing the supportive two-part electricity price policy issued on February 7, benefiting more than 200000 enterprises, and reducing the electricity cost of enterprises by about 3.2 billion yuan.

The two power grid companies have reduced electricity charges by about 59.5 billion yuan in total, which shall be borne by the power grid companies themselves. So, how does such a large-scale reduction of electricity cost affect the grid company?

“The impact on grid companies is huge. The performance of State Grid is not very good, so the impact on it is relatively large. ” Lin Boqiang, Dean of China Energy Policy Research Institute of Xiamen University, told the top financial reporter, “China Southern Power Grid will be slightly better than the State Grid, but because the price of electricity in the past two years has dropped a lot, the performance of China Southern Power Grid is not particularly good, but relatively speaking, China Southern Power Grid bears less (electricity fee relief), so the impact on China Southern Power Grid will be smaller.”

As for whether the two power grids can make up the gap in the second half of the year after the end of the electricity tariff reduction policy on June 30, Lin Boqiang believes that it depends on two points: the first is how long the epidemic lasts, and the second is how much the impact of government infrastructure construction in the second half of the year.

“Infrastructure construction is high energy consumption, and the demand for electricity will be greatly improved, so if the demand for electricity increases substantially in the second half of the year, it is possible for grid companies to make up for it.” Said Lin Boqiang.

In 2018, the operating revenue of State Grid reached 2562.7 billion yuan, with an annual profit of 78.01 billion yuan; the operating revenue of China Southern Power Grid was 537.3 billion yuan.

Sorting out the results of several listed companies under the State Grid, in which Guodian South deducted 136 million yuan of non-net profit loss from the first three quarters of 2019, Xuji Electric’s 2019 results forecast attributable to shareholders of listed companies was 390 million-440 million yuan, an increase of 95.33% – 120.37% year-on-year; Pinggao electric deducted 104 million yuan of non-net profit in the first three quarters of 2019; Guodian South Rui deducted 20.13 yuan of non-net profit in the first three quarters of 2019 Guangdong electric power a’s net profit attributable to shareholders of listed companies is 1.1 billion-14 billion yuan, up 131.84% – 195.07 from the same period of last year.