Recently, the National Development and Reform Commission ("NDRC") and the National Energy Administration ("NEA") have jointly issued the Circular on Launching the Pilot Program of Market-oriented Transactions for the Distributed Power Generation (the "Circular").
The Circular provides for the project scale, modes of market-oriented transactions, electricity transaction organizations, standards for "wheeling charges" for the distributed power generation, applicable supporting policies, organization of the pilot work, etc. The Circular states that entities engaged in distributed power generation projects shall trade the electricity with power consuming enterprises nearby under the power distribution network; power grid enterprises shall undertake the power transmission under the mode of the distributed power generation and cooperate with the related electricity transaction organizations in organizing deals for the distributed power generation in a market-oriented manner, and collect "wheeling charges" at the rate assessed by the government. Furthermore, the Circular expressly states that power grid enterprises shall offer public services for the electric power transmission and electricity transactions under the mode of distributed power generation, and collect "wheeling charges" assessed by the government from entities engaged in the distributed power generation projects; other services, such as the measurement of the consumed power and collecting electric charges on a commission basis, shall be free of any service charge.