Lessons from the Guang'an Pilot and the Road Ahead for Power Pricing Reform

Deep News
Sep 08

Guang'an's experience carries significant symbolic weight when considered within the broader context of Sichuan Province. Prior to August 2025, residential electricity rates charged by more than 40 local power grids across Sichuan were generally higher than those of the State Grid. The issuance of the Notice on Implementing Valley Electricity Pricing Policies for Residential Living Electricity in Local Power Grids marked the beginning of a province-wide push toward unified pricing under a coordinated framework. Local grid operators in Dazhou, Xichang, and Leshan have since followed suit. From a visible price gap across the same street to tangible benefits for 1.5 million residents, Guang'an completed the integration of its electricity pricing system in just over a year.

This reform offers three key insights. First, price reforms in sectors tied to people's livelihoods require both top-down policy breakthroughs and bottom-up implementation loops. Guang'an leveraged party building to drive the reform, converting organizational strengths into problem-solving momentum—from elevating livelihood pain points to political priorities at the party committee level, to establishing task forces with party member strike teams for precise calculation of core data, and to creating横向 government-enterprise consultation mechanisms. This coordinated package of measures served as a critical guarantee for effective implementation.

Second, while delivering benefits to residents, the reform must also support the sustainable development of enterprises by simultaneously establishing institutional channels for cost pass-through. The Notice defined a long-term safeguard mechanism at the institutional level—losses incurred by local grids due to implementing valley pricing will be incorporated into the broader transmission and distribution price reform for coordinated adjustment, providing systemic support for the reform's long-term sustainability.

Third, price parity does not equate to full governance alignment. Grid pricing integration is only the first step; subsequent challenges include grid renovation investments and equalization of urban-rural power supply services, which require sustained, coordinated efforts from all stakeholders.

Currently, Guang'an's electricity pricing reform still faces realistic challenges: renovation of outdated distribution areas in some remote townships continues, metering upgrades for scattered individual households need to be accelerated, and the promotion of off-peak electricity usage lacks sufficient precision—particularly among elderly residents and rural populations who remain unclear about time-of-use tariffs. Additionally, the verification of local grid transmission and distribution prices is still under provincial review, and the cost pass-through for enterprises' phased price reductions requires ongoing coordination. These unfinished tasks represent the focus of future reform efforts.

Guang'an's residential pricing reform continues to deepen, with welfare measures expanding. Recently, the Sichuan Provincial Development and Reform Commission issued a notice adjusting the province's residential tiered electricity pricing policy, further optimizing the system effective July 1 this year. This aims to continuously reduce households' annual comprehensive electricity expenses, making "worry-free power use" a reality for more families.

From "two prices on one street" to province-wide parity, the Guang'an case demonstrates that when reform dividends reach every household meter with precision, residents experience not just numerical changes but a province's commitment to fairness. The institutional value of this reform lies in its provision of a replicable, scalable model for aligning local grid prices with the State Grid and for governing livelihood-related pricing under a diversified power supply structure.

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