Research On Legal Issues Of The Graduated Power Tariff In China

Electricity power has the properties of being quasi-public goods, and its competitiveness gradually outweigh its natural monopoly after "the crowded point". There is also the phenomenon of "information asymmetry" in the electricity market. These three technical-economic characteristics have provided the basis for government intervention in the price of electricity. Meanwhile, we must respond to the new era of energy conservation and environmental protection requirements, and the unfair cross-subsidization between power users is also need to be corrected. Based on the above necessary, China officially launched the graduated power tariff in2012.China’s new tariff regulation mode is carried out simultaneously with the reform of the electricity market, and has showed promising results in energy conservation and guiding consumption.There are four issues need to be addressed when examine the pricing of tariff from the Legal perspective. First, the graduated power tariff lack of legislative support, as follows:the lack of definition of the graduated power tariff in "Electricity Law" as comprehensive legal provisions, which made it difficult to adapt to the development of the electricity reform. The National Development and Reform Commission issued the tariff-setting regulations and it partly conflict with the higher-level laws-The Electricity Act. And the process of the implementation of the price lack of specific legal norms to serve as the guidance. Second, the rationality of the graduated power tariff categorization system has been questioned. The detailed division has lack of comprehensive consideration of the range, Place, Time factors. Third, the hearing on the graduated power tariff has the problem of underrepresentation; in addition, it has the problems of information asymmetry and the lack of openness and transparency. Fourth, the graduated power tariff lack of effective supervision, as follows:the legal status of the original regulatory body is unknown. After the newly formed National Energy Board took over the SERC functions, not only the problems of the original SERC not resolved, the identity of a division of the Development and Reform Commission will make it easily into the unity of administrative and supervision, which lead to low efficiency.To explore the effective measures to improve the legal regulation of the graduated power tariff, we can focus on the following aspects:First, improve the legal system in which ’Energy Law’,’Electricity Law’ serve as the core. In order to adapt to the requirements of the times and regulatory practice, the new terms regarding the graduated power tariff regulation need to be added in the relevant laws. Second, the amount of watts in the first step tariff, the interval price gap, the price selection mode and the valuation cycle need be considered in optimization the graduated power tariff. Third, we should standardize the graduated power tariff hearing system. Particularly, the representatives’ selection process needs to be regulated. We should improve the implementation program of the hearing to increase the degree of information disclosure. Fourth, to improve the regulation system for the graduated power tariff in China, we should focus on defining the clear legal status of regulatory bodies, and grant appropriate regulatory powers. In the foreseeable future, the unity model of administrative and supervision should receive sufficient attention. It is necessary to regulate the process program to improve the judicial intervention of public supervision.