Zhou Wangjun, deputy director of the price division of the National Development and Reform Commission, said in an interview with the Xinhua News Agency that the reform of energy resources prices will be launched this year according to economic conditions. These include steadily advancing the reform of electricity prices, improving the mechanism for the formation of refined oil prices, organizing and implementing pilot reforms of natural gas prices, promoting comprehensive reform of agricultural water prices, and actively and steadily advancing the reform of environmental protection charges.
Zhou Wangjun said that the overall requirement for the central government to implement “stability for progress†in this year’s price work is to earnestly strengthen price regulation and supervision, and on the basis of striving to stabilize the overall price level, study and formulate and improve the outstanding price contradictions that restrict economic and social development. The price reform plan is based on the economic operation situation, and the influence of price reform on all aspects is controlled to a minimum.
The reform of energy resources and resources shall take into consideration the needs of economic and social development and social sustainability, steadily push forward the reform of electricity prices, carry out trials on bidding for prices and direct transactions, strengthen cost constraints on power grid companies, and gradually establish a scientific and reasonable mechanism for the formation of transmission and distribution tariffs to organize implementation. Good implementation of electricity pricing plans for residents across the country; improve the mechanism for the formation of refined oil prices; shorten the cycle of price adjustments; improve the mode of price adjustment; improve the transparency of the operation of mechanisms; organize the implementation of natural gas price reforms in Guangdong and Guangxi; properly rationalize natural gas and alternative energy sources The price relationship encourages local governments to actively explore the policy of price ladders, and studies ways to implement relatively low prices for low-income groups.
This year will also promote the comprehensive reform of agricultural water prices, improve the price policy for agricultural water use, increase the publicity of the adjustment of water price, simplify the classification of water prices, promote the ladder water price for residential water use and the non-residential water use over-quota progressive fee increase system. In addition, various localities can actively and steadily push forward environmental protection charge reforms such as garbage and sewage according to needs and possibilities.
Zhou Wangjun said that the focus of price reform is to straighten out price relations and give full play to the role of market mechanisms in guiding resource allocation. It cannot simply be equated with “price increaseâ€. However, due to China's planned economic period, in order to promote economic development and ensure the basic livelihood of the people, the “low price, low income, and low consumption†model has been implemented for a long time, and the prices of basic products such as resources and energy have been relatively low. During the process of reform and opening up, in order to rationalize the price relationship, it may be demonstrated that there are more “additions†and “subtraction†less.
In the process of advancing price reforms, the state has always paid attention to actively and steadily pushing forward price reforms, striving to adapt price changes to the level of economic development and adapting to the social endurance. However, we must also realize that China has been reforming and opening up for more than 30 years, and it has also been 10 years since its entry into the World Trade Organization. The degree of internationalization of China’s economy is already very high. In particular, the degree of dependence on foreign oil reaches 57.5% and the dependence on imports of iron ore exceeds. 65% and natural gas have an external dependency of more than 15%. This is also the case for some other energy resources products. If the domestic prices of these commodities are lower than the international market, it will be difficult to guarantee the supply of domestic markets. Therefore, in the field of resources and energy products with high external dependence, price adjustments must take into account more international market factors, while for domestic resources that are essentially self-sufficient, such as coal, price reforms should be considered more. Domestic affordability and price-relationship with related alternative products.
Zhou Wangjun said that the overall requirement for the central government to implement “stability for progress†in this year’s price work is to earnestly strengthen price regulation and supervision, and on the basis of striving to stabilize the overall price level, study and formulate and improve the outstanding price contradictions that restrict economic and social development. The price reform plan is based on the economic operation situation, and the influence of price reform on all aspects is controlled to a minimum.
The reform of energy resources and resources shall take into consideration the needs of economic and social development and social sustainability, steadily push forward the reform of electricity prices, carry out trials on bidding for prices and direct transactions, strengthen cost constraints on power grid companies, and gradually establish a scientific and reasonable mechanism for the formation of transmission and distribution tariffs to organize implementation. Good implementation of electricity pricing plans for residents across the country; improve the mechanism for the formation of refined oil prices; shorten the cycle of price adjustments; improve the mode of price adjustment; improve the transparency of the operation of mechanisms; organize the implementation of natural gas price reforms in Guangdong and Guangxi; properly rationalize natural gas and alternative energy sources The price relationship encourages local governments to actively explore the policy of price ladders, and studies ways to implement relatively low prices for low-income groups.
This year will also promote the comprehensive reform of agricultural water prices, improve the price policy for agricultural water use, increase the publicity of the adjustment of water price, simplify the classification of water prices, promote the ladder water price for residential water use and the non-residential water use over-quota progressive fee increase system. In addition, various localities can actively and steadily push forward environmental protection charge reforms such as garbage and sewage according to needs and possibilities.
Zhou Wangjun said that the focus of price reform is to straighten out price relations and give full play to the role of market mechanisms in guiding resource allocation. It cannot simply be equated with “price increaseâ€. However, due to China's planned economic period, in order to promote economic development and ensure the basic livelihood of the people, the “low price, low income, and low consumption†model has been implemented for a long time, and the prices of basic products such as resources and energy have been relatively low. During the process of reform and opening up, in order to rationalize the price relationship, it may be demonstrated that there are more “additions†and “subtraction†less.
In the process of advancing price reforms, the state has always paid attention to actively and steadily pushing forward price reforms, striving to adapt price changes to the level of economic development and adapting to the social endurance. However, we must also realize that China has been reforming and opening up for more than 30 years, and it has also been 10 years since its entry into the World Trade Organization. The degree of internationalization of China’s economy is already very high. In particular, the degree of dependence on foreign oil reaches 57.5% and the dependence on imports of iron ore exceeds. 65% and natural gas have an external dependency of more than 15%. This is also the case for some other energy resources products. If the domestic prices of these commodities are lower than the international market, it will be difficult to guarantee the supply of domestic markets. Therefore, in the field of resources and energy products with high external dependence, price adjustments must take into account more international market factors, while for domestic resources that are essentially self-sufficient, such as coal, price reforms should be considered more. Domestic affordability and price-relationship with related alternative products.
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