[ferro-alloys.com]

  In order to implement the relevant requirements of the state and the autonomous region on energy consumption double control, curb the blind development of high energy consuming industries, promote the transformation of economic development mode and economic restructuring, and improve energy efficiency, the autonomous region has implemented more stringent differential and step tariff policies for eight industries of electrolytic aluminum, ferroalloy, calcium carbide, caustic soda, cement, steel, yellow phosphorus and zinc smelting. The interpretation is as follows:

  1、 Policy requirements of national differential price and step price

  （1） Differential pricing policy. Since 2004, the National Development and Reform Commission (NDRC) has started to use price leverage to try out differentiated electricity prices for six high energy consuming industries, namely electrolytic aluminum, ferroalloy, calcium carbide, caustic soda, cement and steel, according to the requirements of national industrial policies. Since June 1, 2010, the National Development and Reform Commission has further strengthened the implementation of the differential electricity price policy. The industry scope has been expanded to eight industries including electrolytic aluminum, ferroalloy, calcium carbide, caustic soda, cement, iron and steel, yellow phosphorus and zinc smelting. The standard of differential electricity price increase has been further improved. The standard of electricity price increase implemented by restricted enterprises has been increased from 0.05 ¥/kwh hour to 0.1¥, and eliminated enterprises. The standard of price increase is raised from 0.2 ¥/kwh hour to 0.3 ¥. In 2014 and 2016, more stringent differential price policies were implemented for the production power consumption of cement clinker enterprises and iron and steel enterprises, and the price increase standard was increased to 0.4 ¥ and 0.5 ¥/kwh hour respectively. On this basis, all localities are required to further improve the price increase standards for eliminated and restricted enterprises according to the needs, strictly implement the differential electricity price policy, strengthen the dynamic screening of high energy consuming enterprises, and timely update the list of enterprises implementing the differential electricity price, so as to ensure that the differential electricity price policy is fully implemented.

  （2） Step tariff policy. While the National Development and Reform Commission implements the policy of differential electricity price for enterprises of restricted and eliminated categories, it also implements the step price for those whose energy consumption exceeds the national standard of energy consumption per unit product (electricity consumption). At present, the national development and Reform Commission has clear regulations on the energy consumption standard and price increase standard of electrolytic aluminum, cement and iron and steel enterprises.

  Therefore, the differential price policy and the step price policy are the existing policies implemented by the state and local governments for many years, not the new ones this year.

  2、 The specific implementation requirements of the policy of differential price and step price in the Autonomous Region

  （1） The implementation mode of differential price policy. In 2020 and previous years, the autonomous region has implemented the differential electricity price policy for the production electricity consumption of restricted iron and steel enterprises. Since 2021, in accordance with the task requirements of the state and the autonomous region to strengthen the double control of total energy consumption and intensity, the Development and Reform Commission of the autonomous region and the Department of industry and information technology have jointly issued a document to clearly implement the differential electricity price policy for eight industries, namely electrolytic aluminum, ferroalloy, calcium carbide, caustic soda, cement, steel, yellow phosphorus and zinc smelting. The specific implementation mode has also been adjusted from the previous recovery in the next year to immediate collection in the current year. The specific procedures are as follows: in accordance with the industrial policies of the state and the autonomous region, the Department of industry and information technology of the autonomous region, together with relevant departments, screened out the list of eliminated and restricted enterprises (production equipment) that were included in the backward production capacity of the autonomous region in the current year. According to the list of enterprises (production equipment) published by the Department of industry and information technology of the autonomous region and the price increase standard published by the development and Reform Commission of the autonomous region, the power grid enterprises (production equipment) were selected according to the list of enterprises (production equipment) The production electricity consumption (including market-oriented trading electricity, auxiliary production and environmental protection equipment electricity consumption) is charged with the tariff increase of the current year, and the self-owned electricity consumption of self-owned units is charged at the same time. Since this year's enterprise screening work can only be completed in March, the electricity charge for this year's tariff increase needs to be recovered from January to February.

  （2） The standard of differential price increase. In 2021, in the electrolytic aluminum, ferroalloy, calcium carbide, caustic soda, cement, steel, yellow phosphorus and zinc smelting industries, the price increase standard of the restricted enterprises (production equipment) listed in the backward production capacity of the autonomous region is 0.1 ¥/kwh hour, the price increase standard of the eliminated cement and steel enterprises (production equipment) is 0.4 ¥ and 0.5 ¥/kwh hour respectively, and the price increase standard of the eliminated other industries (production equipment) except cement and steel is 0.4 ¥/kwh hour 3 ¥/kwh hour.

  （3） The implementation mode of step tariff policy. The electricity consumption of electrolytic aluminum, cement and iron and steel enterprises in 2021 and before shall be implemented annually, and the corresponding electricity price standard shall be implemented annually according to the actual power consumption level and production power consumption of the previous year.

  （4） The standard of step tariff increase. If the AC power consumption of liquid aluminum electrolysis in electrolytic aluminum enterprises is not higher than 13700 kwh per ton, the electricity consumption of liquid aluminum electrolysis (including the electricity from self-provided power plant, the same below) will not be increased; if the AC power consumption is higher than 13700 kwh per ton but not higher than 13800 kwh, the electricity consumption of liquid aluminum electrolysis will be increased by 0.02¥/kwh; if the AC power consumption is higher than 13800 kwh, the electricity consumption of liquid aluminum electrolysis will be increased by 0.08¥/kwh. Please refer to the letter of the development and Reform Commission of Inner Mongolia Autonomous Region on clarifying the implementation of differential electricity price and ladder electricity price increase standards for some industries for the standard of ladder electricity price increase for cement and iron and steel enterprises.

  （5） Other matters. The power consumption of eliminated and restricted production equipment of self-provided power plants operating in isolated network shall be declared and promised by the enterprises themselves, and the power grid enterprises shall collect the tariff increase according to the declared data of self-provided power plants.

• [Editor:Catherine Ren]