The Development and Reform Commission has issued the second batch of four measures to reduce electricity prices.

In order to implement the request in this year's government work report that the average electricity price for industry and commerce should be reduced by another 10 percent, the National Development and Reform Commission issued the second batch of four measures to reduce electricity price on May 15.

The notice on the reduction of General Industrial and Commercial electricity prices (hereinafter referred to as the notice) makes it clear that, in addition to market-oriented trading electricity, the collection standard of major water conservancy project construction funds will reduce the price reduction space formed by 50%. All will be used to reduce the electricity price of general industry and commerce.

At the same time, the depreciation life of fixed assets of power grid enterprises will be properly extended, and the average depreciation rate of fixed assets of power grid enterprises will be reduced by 0.5 percentage points. After the VAT tax rate and the average depreciation rate of fixed assets are reduced, the price reduction space formed by the re-approved transmission price reduction of cross-provincial and inter-regional special projects is distributed according to the ratio of 1: 1 between the power transmission provinces and the electricity receiving provinces.

The third measure in the notice is that, as the value-added tax rate is reduced to 13%, the non-market trading electricity of hydropower enterprises in the province, The price reduction space formed by non-market trading electricity of foreign hydropower and nuclear power enterprises (except the third generation nuclear power units) will also be used to reduce the electricity price of industry and commerce.

In addition, we should actively expand the scale of industrial and commercial users participating in electricity marketization transactions, and further reduce the cost of electricity through the market mechanism.

The National Development and Reform Commission requires that the provincial (district, municipal) price authorities should pay close attention to studying and put forward a specific plan to reduce the local industrial and commercial electricity price accordingly by using the above price reduction space, and issue a letter before the end of May in accordance with the procedures and formally implement it on July 1.