2006年-世界发展银行全球_Policy_Study_on_Electricity_Universal_Service_in_China_74页_626kb

Summary of the Policy Study on Electricity Universal Service in China

Core Content

This policy study, conducted by the Research Team of the Policy Study on Electricity Universal Service in China, focuses on the development and implementation of universal service in the electricity sector. It explores the policy basis, financial mechanisms, and supervision framework for ensuring electricity access to all citizens, especially in rural and remote areas. The study is supported by the World Bank and is part of a broader effort to align with China's strategic goals of building a well-off society and a new socialist countryside.

Main Conclusions of the Investigation

1.1.1 Brief Introduction to Universal Service

Universal service in electricity is a public policy concept that aims to ensure all citizens, regardless of location, can access reliable and affordable power. It has three core characteristics: availability, non-discrimination, and affordability. The concept is recognized globally and has been successfully implemented in some developed countries.

1.1.2.1 Research Methods and Sample

• Research Scope: Conducted nationwide across 31 provinces, with a focus on six major regions including Tibet, Shaanxi, Shandong, Shanxi, Guizhou, and Heilongjiang.
• Sampling: Three typical counties (one powered by a small hydropower station) were selected in each province, with 20 households per county and no less than 60 per province.
• Survey Data: 1261 effective questionnaires were collected, including 527 government-designated poor families and 734 non-designated poor families.

1.1.2.2 Number and Situation of Villages, Households and Population without Access to Electricity

• State Grid Corporation (SG): As of 2005, 98.79% of counties, 98.84% of villages, and 99.37% of rural households had access to electricity.
• Southern Power Grid: 795,000 households and 3.2 million people had no access to electricity.
• National Estimate: About 2.5 million households nationwide lacked electricity access.
• Solutions: Two main approaches were identified: extending the power grid and building independent power sources such as small hydropower, wind, solar, or biomass stations.

1.1.2.3 Low-Income Population and Electricity Consumption

• Low-Income Groups: The proportion of the "most difficult groups" in five provinces increased from 1.72% to 3.22%.
• Income Growth: Annual per capita income in the five provinces increased by 31.37% from 1999 to 2004.
• Electricity Consumption: Increased by 64.1% during the same period, indicating a positive correlation with economic growth. Consumption in Qinghai, Jilin, Yunnan, and Gansu was only 96.48 kW·h per capita in 1999.

1.1.2.4 Rural Power Grid Operation Costs

• Investment Growth: Rural power grid transformation saw increasing investment, with an annual growth rate of 16.8% in 2001 and 33.8% in 2004.
• Cost Analysis: The cost per unit of electricity sales rose from 0.213 yuan/kW·h in 1999 to 0.313 yuan/kW·h in 2004.
• Profitability: Despite rising costs, power suppliers still made profits due to the structure of expenses, such as salary, welfare, and depreciation.

1.1.2.5 Rural Power Grid Transformation and Investment

• Planned Investment: 21,167.7873 million yuan was planned for the five provinces over five years.
• Actual Investment: 18,411.9818 million yuan was executed, with 24% from public debts, 54% from bank loans, and 22% self-raised.
• Unexecuted Investment: 2,755.8055 million yuan, or 13%, was not utilized.
• Investment in Electrification: 47.3% of the rural grid transformation plan was allocated to electrification of villages with no access to electricity.

1.1.2.6 Rural Households and Their Demands

• Surveyed Families: 814 rural families were surveyed, including 274 government-designated poor families.
• Demographics: 53.58% of the surveyed population were male, and 46.42% were female.
• Occupations: 63% of family members were engaged in traditional agriculture, 9% in migrant work.
• Income and Expenditure: Farmers' per capita income increased from 1460 yuan in 2001 to 2310 yuan in 2005, while expenditure increased by 47%.
• Impact of Electrification: The electrification project was seen as a major life change, improving lifestyle and production efficiency.

Lessons from Domestic and International Industries

1.2 Domestic Lessons

• Postal Service: Emphasizes the importance of legal frameworks, setting goals step-by-step, and government financial subsidies.
• Telecommunications: Highlights the need for legislative guarantees, clear management principles, and standardized compensation mechanisms.

1.3 International Lessons

• Postal Service: Focuses on legal system building, defining monopoly rights, and improving compensation mechanisms.
• Telecommunications: Includes legislative guarantees, value-based compensation, and the establishment of a special managerial authority for the universal service fund.

Fund Raising and Compensation Mechanism

2.1 Universal Service Standards

• Target Groups: Urban low-income groups, rural areas, and outlying regions.
• Policy Definition: The State Electricity Regulatory Commission defines universal service as ensuring all users have access to reliable and consistent basic power service at a reasonable price.

2.2 Estimated Funds in Need

• Electrification Cost: The study estimates the cost of providing electricity to households without access.
• Power Rates and Costs: Examines the relationship between user power rates and the operation and maintenance costs of power companies.

2.3 Capital Sources and Fund Raising

• Sources: Includes public debts, bank loans, and self-raising.
• Principles: Focuses on ensuring affordability, non-discrimination, and sustainability.

2.4 Electricity Universal Service Mode

• Subjects: Power companies and government.
• Operation Mode: Includes appointment mode, fund mode, and a model suitable for China's context.
• Regulatory Mechanism: A system to ensure fair pricing, quality service, and transparency in fund usage.

2.5 Compensation Mechanism

• Government Role: Establishing a universal service fund, transferring business revenue, and providing tax preferences.
• Supporting Policies: Includes financial and tax policies to reduce the burden on power companies.

Supervision Framework

3.1 Supervision Targets

• Quantity: Ensuring coverage of all households.
• Quality: Monitoring the reliability and affordability of service.
• Fund Use: Ensuring transparency and proper allocation of funds.

3.2 Supervision Principles

• Legal Supervision: Based on laws and regulations.
• Balanced Rights and Duties: Ensuring accountability between service providers and users.
• Bidding Process: Used to decide projects and prevent disorderly competition.
• Grid Stability: Ensuring uninterrupted power transmission and distribution.

3.3 Task and Substance of Supervision

• Open Service: Universal service should be accessible to all.
• Social Responsibility: Enhancing the social responsibility of power enterprises.
• User Equality: Ensuring all users have equal access to service.
• Service Expansion: Expanding traditional services into universal service.
• Safety and Compliance: Ensuring the safety of power networks and compliance with regulations.

3.4 Supervision Institutes

• Responsibilities: Monitoring the implementation of universal service policies, ensuring compliance, and providing oversight.

Policy and Suggestions

4.1 Multilevel Goals

• Align universal service goals with economic and social development stages.

4.2 Legal Guarantee System

• Establish and improve laws and regulations to support universal service.

4.3 Special Plan and Target System

• Develop a detailed plan for universal service in electricity and set clear targets.

4.4 Regulatory Mechanism

• Strengthen regulatory institutions and measures to ensure fair and effective service delivery.

4.5 Supporting Policies

• Include loan, tax, and financial policies to support the implementation of universal service.

4.6 Integration with State Energy Policy

• Promote universal service in electricity by integrating it with broader state energy strategies.

Team Members

• Team Leaders:

  • Li Junfeng: Deputy Head and Senior Researcher of the Energy Research Institute, NDRC
  • Gao Shixian: Head and Senior Researcher of the Research Centre for Energy Economics and Development Strategies, ERI, NDRC

• Team Members:

  • Shi Jingli: Deputy Research Fellow, NDRC
  • Niu Chen: Intern Researcher, NDRC
  • Zhao Dongxu: Ph.D. Candidate, Chinese Academy of Social Sciences

• Contributors:

  • Bai Yan: Associate Professor, Peking University
  • Huang Hengxue: Professor, Peking University
  • Li Lingling: Lecturer, North China Electric Power University
  • Yang Zhigang: Ph.D. Candidate, Peking University
  • Lei Yuqiong: Lecturer, BeiHang University
  • Cui Jia: Ph.D. Candidate, Peking University