Pi Haizhou: Power stocks usher in a positive market trading electricity price floating range adjusted to no more than 20%

Pi Hai Chau | Cube everyone talks columnist

In view of the recent phenomenon of "pulling the gate and curtailing electricity" in some places, the National Standing Committee has finally taken action. At the Regular National Meeting held on October 8, the National Standing Committee proposed six major initiatives. It is required that all localities strictly implement their territorial management responsibilities, do a good job in orderly electricity management, correct some localities to "one-size-fits-all" production suspension and production restriction or "sports" carbon reduction, and oppose inaction and chaotic behavior.

These six major measures are: First, we must adhere to the priority of people's livelihood, ensure the livelihood of the masses and the energy used for heating in winter, and ensure the use of coal for power generation and heating, especially the use of coal in the northeast region in winter. Second, under the premise of ensuring safe production, we must promote coal mines with potential to increase production to release production capacity as soon as possible. Third, we must support coal power enterprises to increase power supply。 Fourth, we must reform and improve the market-oriented formation mechanism for coal power prices。 Fifth, we must accelerate the construction of large-scale wind power and photovoltaic bases in the desert Gobi desert area, and accelerate the construction of emergency standby and peak shaving power supply。 Actively promote coal, natural gas, crude oil reserves and energy storage capacity building。 Sixth, we must resolutely curb the blind development of the "two supremes" project.

Among the above six major measures, the fourth article is undoubtedly of particular concern. According to the arrangements of the National Standing Committee, reform and improve the market-oriented formation mechanism for coal power prices。 Orderly promote all coal-fired power generation into the electricity market, under the premise of maintaining the stability of electricity prices for residents, agriculture, and public welfare undertakings, adjust the range of fluctuations in market transaction electricity prices from no more than 10% and 15% respectively to no more than 20% in principle, and do a good job of classification adjustment, and high-energy-consuming industries can form prices from market transactions without being limited by 20%. Encourage local governments to implement phased preferential policies for the use of electricity by small and micro enterprises and individual industrial and commercial households。

The amount of information included in this article is obviously enormous. First, it is necessary to orderly promote all coal-fired power generation into the electricity market, which is conducive to expanding the source of electricity; second, it is necessary to maintain the stability of electricity prices for residents, agriculture, and public welfare undertakings, which also means that the electricity prices of residents, agriculture, and public welfare undertakings remain unchanged, which is consistent with the first of the six major measures, "adhere to the people's livelihood priority", and is a way of "adhering to the people's livelihood priority". Third, the floating range of the current market trading electricity price will be raised from 10% and 15% to 20%, which is obviously a big positive for power companies and power stocks in the stock market. Although the market transaction price is up and down, from the perspective of China's tight power supply, the electricity price will basically only rise, not down. Floating basically means that the price of electricity rises, which is obviously conducive to increasing the efficiency of power companies. The fourth is to implement classification adjustment, and the price of high-energy-consuming industries can be formed by market transactions, and it is not limited by 20%. This is consistent with the sixth of the six major measures to resolutely curb the blind development of the "two supremes" project. Fifth, it is to encourage local governments to implement phased preferential policies for the use of electricity by small and micro enterprises and individual industrial and commercial households, which also reflects the support of national policies for small and micro enterprises and individual industrial and commercial households.

Of course, the six major measures to benefit power stocks are not limited to the expansion of the fluctuation of trading electricity prices, and the second and third major measures are also major benefits for power stocks. For example, according to the second major measure, under the premise of ensuring safe production, it is necessary to promote the release of production capacity of coal mines with the potential to increase production as soon as possible, accelerate the production and production of open-pit coal mines that have been approved and basically completed, and promote the rectification of coal mines that have stopped production and rectification in accordance with laws and regulations and resume production as soon as possible. Transportation departments should give priority to ensuring coal transportation and ensuring that the coal produced is transported to the places where it is needed in a timely manner. This article is clearly an increase in coal supply.

Another example is the third major initiative, which should support coal power enterprises to increase power supply. In view of the difficulties of coal power enterprises, implement a phased tax deferral policy, and guide and encourage financial institutions to ensure the reasonable financing needs of coal power enterprises such as coal purchase。 This is also a major positive for power companies.

It can be said that the benefits of the six major measures for power companies are real. In addition to power companies, the six major initiatives are also a huge positive for the coal industry. The second of the six initiatives is a major positive for the coal industry. On the one hand, coal enterprises are required to release production capacity as soon as possible, including speeding up the production and production of approved and basically completed open-pit coal mines, and promoting the rectification of coal mines that have stopped production and rectified in accordance with laws and regulations and resuming production as soon as possible; on the other hand, in the transportation link, priority should be given to ensuring coal transportation and ensuring that the coal produced is transported to the places where it is needed in a timely manner, which is obviously a major support for the coal industry.

In addition, the fifth major measure proposes to accelerate the construction of large-scale wind power and photovoltaic bases in the desert Gobi desert area, and accelerate the construction of emergency standby and peak shaving power. Actively promote coal, natural gas, crude oil reserves and energy storage capacity building。 Obviously, this article also constitutes a positive effect on wind power, photovoltaic power generation, coal, natural gas, and crude oil industries. Therefore, six major initiatives will inject vitality into the speculation of related concept stocks in the market.

Editor-in-charge: Tao Jiyan | Review: Li Zhen | Director: Wan Junwei