The National Development and Reform Commission ("NDRC") and the National Energy Administration ("NEA") have recently issued the Circular on Further Promoting the Reform of New Power Distribution Business (the "Circular").
The Circular sets out arrangements in four aspects, including "further regulating the determination of which entities will undertake projects" and "clearly defining the scope of new business and of existing business". Further, the Circular reads that, for all new power distribution business projects proposed under the pilot reform, entities that are allowed to undertake such projects shall be cherrypicked on a transparent, equal and fair footing in a market-based manner, such as through public bidding, according to the relevant provisions of the Tendering and Bidding Law and its implementation regulations. Meanwhile, it is made clear that both power distribution grid projects that have been included into relevant provincial-level power grid plans but not yet been approved or filed under record, and those power distribution grid projects that have been approved or filed under record but not yet broken ground within the validity of relevant documents, fall into the scope of new power distribution business, and may participate in the reform of new power distribution business, depending on the circumstances and in line with the Administrative Measures for Gradually Easing Restrictions on Power Distribution Grid Business. Any enterprise shall not start building power distribution grids, without approval or record-filing, and illegally built power distribution grids will not be identified as the enterprise's existing power distribution facilities.