Design On The Pricing Machanism About Hydropower Feed-in Benchmark Tariff In H Province

In recent years, the on-grid power price in our country has undergone several adjustments; especially since the implementation of the policy of coal-power price linkage in 2004, the on-grid price of thermal power has been gradually rising year by year along with the price of electric coal. Meanwhile, the on-grid price of hydropower has also been following the rise at a conservative speed; in recent two years, it has the momentum of catching up with the increase level of the on-grid price of thermal power; more and more people call for the same price of hydropower as that of thermal power. In particular, in recent years there have been constant adjustments of the on-grid price of hydropower, but contradictions in the on-grid price of hydropower are becoming more prominent and claims of hydropower enterprises have also been increasing. At the beginning of 2014, the state made further regulation of the pricing of the on-grid price of hydropower. Under the new circumstance, in order to guarantee the coordinated and sustainable development of power industry and protect natural ecology and social environment, it’s significant to establish scientific and rational pricing mechanism of on-grid power at provincial level, based on the objective environment of on-grid power price in the province.The research of this paper is composed of five parts. Part one is the analysis and research on the background and significance of the pricing mechanism of on-grid price of hydropower, foreshadowing the proposal about the pricing mechanism of the on-grid price of hydropower in H province. Part two elaborated the basic theories of pricing and the formation mechanism of on-grid power price. Part three introduced the reform process of the on-grid price of hydropower in our country, providing useful basis and reference for the design of pricing mechanism in H province. Part four analyzed concretely the current status and the evolution of the pricing of on-grid price of hydropower in H province, serving as the basis and stance of the research and analysis of the paper; in this part the current pricing status of on-grid power price, the changes of on-grid power price levels and a series of existing problems in H province were analyzed; reasons for the formation of these problems were summarized. In part five the pricing mechanism of the on-grid benchmark price of hydropower in H province was proposed. Reform thinking of the pricing of on-grid price of hydropower in H province was also put forward. Design and arrangement were made concerning the principle, framework, methods and level of pricing surveillance.The research results of this article mainly consist of the following three points:the first is the pricing of on-grid price of hydropower should be based on the resource distribution in the province. On the basis of many domestic and foreign studies on power price theories, on-grid power price mechanism that coincides with the development of hydropower enterprise of the province and that is convenient to operate should be established, centering on the development and electricity generation of the hydropower enterprise in the province, so as to improve the utilization efficiency of resources, save social resources and meanwhile achieve the stakeholders’benefit maximization. The second point is establishing the power pricing system at national and provincial level. In the present power pricing system, the on-grid price of hydropower is quite complex. Research can be made on the setting up of two-level pricing system, to standardize power pricing, unify power price criteria and reflect the real price level. The third point is perfecting benchmark power price mechanism according to the concept of "maintaining reasonable level and indicating market value". By the adoption of benchmark power price of different classifications, the pricing mechanism of on-grid benchmark price of hydropower can be perfected in terms of seasonal adjustment coefficient. This suggestions made in paper on the basis of research can provide reference for the government’s rationally confirming the on-grid price of hydropower, reducing classifications of power prices and simplifying the execution of power prices.