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Accelerating reforms to promote natural gas incremental prices

Accelerating reforms to promote natural gas incremental prices

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Recently, the National Development and Reform Commission issued the "Circular on Adjusting the Price of Residential Valve Stations for Residents" (hereinafter referred to as the "Notice"). Since June 10, residents and non-residents use gas prices to implement the integration, which means China's natural gas price market. The reforms are moving forward again.
At the end of 2011, China carried out pilot reforms of natural gas price formation mechanisms in Guangdong and Guangxi, adjusted the natural gas price management from the factory link to the door station link, implemented the highest ceiling price management, and changed the pricing method from “cost-plus” pricing to “ "Market net return value" pricing, market price reform of natural gas prices kicked off.
In order to prevent natural gas prices from affecting residents' lives, the market price reform of natural gas prices has focused on non-resident gas use in recent years, while the reform of gas prices for residents has lagged behind, and the price of residential gas has not been adjusted since 2010. With the changes in the market situation at home and abroad and the deepening of the reform of non-resident gas prices, the contradictions between low prices of gas for residents have become increasingly prominent.
According to the analysis of the responsible person of the National Development and Reform Commission's Price Division, the contradictions of low gas prices among residents are mainly reflected in the following: First, the price is inverted, which does not reflect costs. The inversion of residents' gas prices is not conducive to ensuring the supply of gas to the residents, nor is it conducive to the sustained and healthy development of the natural gas industry. Second, the price of existing valve stations for residential use is subject to an upper limit of price management. The price mechanism lacks flexibility and cannot reflect changes in market supply and demand sensitively, which is not conducive to optimal allocation of resources and efficient use of savings. Third, the implementation of controversy continues to increase the difficulty of supervision. The price of residential valve stations is lower than that of non-residents, which tends to lead both supply and demand sides to “empty holes”, affecting the efficiency of market operations, and it is also not conducive to government supervision.
It is understood that last year's heating season, the domestic natural gas supply was tight, highlighting the contradiction of low gas prices among residents. On the one hand, the price of residential gas is inelastic and cannot reflect the changes in market supply and demand sensitively, especially the seasonal differences between winter and summer, and it is also not conducive to the optimal allocation of resources and efficient use of savings. On the other hand, the inconsistency in prices of gas between residents and non-residents has become the focus of disputes between supply and demand sides, resulting in the lack of incentive for downstream gas companies to protect residents' use of gas. As a result, China decided to seize the favorable opportunity for the current domestic price level to be relatively stable, rationalize the price of residential gas stations, and improve the price mechanism.
The “Notice” requires that the prices of valve stations for residents be rationalized, an elastic price mechanism reflecting changes in supply and demand should be established, the price of residential gas used should be changed from the highest gate station price management to the baseline gate station price management, and the price level should be based on non-residential gas reference gate stations. Price level arrangements. The supply and demand sides can base on the price of the benchmark gate station, negotiate and determine the specific gate station price within the range of 20% of floatation and floating down, and realize the link between residents and non-resident gas price mechanisms.
In order to guarantee the use of low-income groups, the "Notice" pointed out that appropriate subsidy should be given to the low-income groups in urban and rural areas and the rural areas in northern regions. The subsidy should be borne by the local government and the central government should use air pollution prevention and control. Existing funding channels increase support.
It can be foreseen that the implementation of the combined price of gas for residents and non-residents will help eliminate the price gap between residents and non-residents, correct distortion of price signals, optimize the allocation of natural gas resources, and effectively improve the supply of warmth for upstream and downstream enterprises. Enthusiasm.
It should be pointed out that the reform of the natural gas price market needs to be coordinated with the reform of the natural gas system. Only by accelerating the reform of the system, the competition will be given to the market, so that more social actors can participate in natural gas extraction and import, and infrastructure construction such as pipeline networks can be accelerated. Only by fair and open can we play a decisive role in the market and promote natural gas increments and price cuts.