Transition of tariff structure and distribution pricing in China

Distribution pricing scheme and tariff structure has been changing during the past decades all over the world. This paper introduces the transition and current situation of distribution pricing scheme as well as tariff structure in China. The price scheme is firstly introduced by dividing the time span into two phases, before and after 2005. Then, the tariff structure is described and compared from the perspective of different provinces, different years and different types of customer. Finally, some recent actions and significant trends on distribution pricing are discussed, including direct electricity purchasing from large consumers, time-of-use price scheme, progressive pricing scheme, new policy supporting demand-side management (DSM) and new load forecast mechanisms considering distribution price and demand response. Along with the development of smart grid technology, it could be expected that China will develop towards a better tariff structure and more reasonable charging mechanisms, which promote efficiencies of electricity distribution and consumption.