News Conference on Shandong Province’s Interim Measures for Progressive Price Markup On Over-standard Energy Consumption
2:30p.m. Feb.28th, 2007, at the Little Auditorium of the 4th floor, Nanjiao Hotel
Chaired by Mr. Zhang Dekuan, spokesman and Deputy Secretary-general of the Provincial Government
Zhang Dekuan:Ladies and Gentlemen, dear reporters,
Zhang Dekuan:Good afternoon. This is the first news conference of the year and on this occasion, I’d like to convey our New Year’s greeting and our thanks to the friends from the media who have been reporting on a our news conferences.
Zhang Dekuan:Constructing a resource-saving and environment-friendly society is the necessary requirement of implementing the scientific viewpoint of development and of achieving a sustainable economy. The Provincial Party Committee and the Provincial Government both attach great importance to the issue and have formulated price policies and adopted a series of measures such as discriminatory electricity price and discriminatory water price to reduce energy consumption, which facilitated the change in the mode of economic development of Shandong Province.
Zhang Dekuan:On Feb.15th, the 86th Routine Conference of Provincial Government passed the Shandong Province’s Interim Measures for Progressive Price Markup On Over-standard Energy Consumption, which will be implemented from Mar. 1st in the whole province. Today, we have invited Mr. Chen Yun, Director General and General Secretary of the Party Committee of the Provincial Price Bureau, to brief on the Measures and answer your questions.
Those who attend the news conference include reporters from the Jinan branches of some national news media, Hong Kong news media, the provincial media and Jinan news media.
Zhang Dekuan:First of all, let’s welcome Mr. Chen Yun, Director General and General Secretary of the Party Committee of the Provincial Price Bureau, to brief on the main purpose, content and relevant measures of the Shandong Province’s Interim Measures for Progressive Price Markup On Over-standard Energy Consumption.
Chen Yun:Ladies and Gentlemen, dear reporters,
Chen Yun:The Provincial Government issued the No. (2007) 10 document on Feb.15th to announce Shandong Province’s Interim Measures for Progressive Price Markup
Chen Yun:On Over-standard Energy Consumption. The Measures will be put into effect formally on Mar. 1st. As arranged by the provincial government, we hold this news conference today to brief on the relevant affairs and the measures to be taken to ensure a smooth implementation of the Interim Measures.
Chen Yun:I. The progressive price markup system, which is based on over-standard energy consumption, is a major policy for enhancing energy-saving and resource-conserving.
Chen Yun:The progressive price markup system enhances energy-saving and resource-conserving. Strategically speaking, it’s the major measure for setting up a resource-conserving and environment-friendly society and a necessary requirement for achieving a sustainable development. This includes 3 aspects:
Chen Yun: 1. The progressive price markup system is a concrete step in energy-saving and resource-conserving.
2. The progressive price markup system is an important guarantee for meeting the requirements of the resource and environment indexes set by the 11th Five-year Plan.
3. The progressive price markup system is an effective measure to increase efficiency in energy consumption.
Chen Yun:II. To correctly understand and carry out the progressive price markup system
The progressive price markup system is an important decision of the CPC Provincial Committee and Provincial Government, aiming at implementing the scientific viewpoint of development and a better and faster development of Shandong’s economy. Government at all levels and relevant business units should study the basic principles and understand this markup system, mostly in the following five aspects:
Chen Yun:1. Ascertainment of over-standard energy consumption. Ascertainment of over-standard energy consumption is carried out chiefly in accordance with the State and Provincial standards on energy consumption efficiency as well as standards issued by relevant administrative departments responsible for the work.
Chen Yun:Chen Yun:Chen Yun:2. Ascertainment of benchmark prices and progressive markups. Commercial energy includes coal, electricity, oil, gas and heat. In accordance with the average prices of electricity and coal in Shandong Province, the benchmark price of electricity is RMB0.6/kWh; the benchmark price of standard coal is RMB500/mt. The progressive markups are divided into three classes by 10% and 20% respectively. These are decided by considering the current situations of enterprises concerned in Shandong Province and by borrowing practices from other provincial and city governments. These classes and markups are scientific and feasible.
Chen Yun:3. Ascertainment of the Over-standard Energy Consumption Fee. The present energy consumption standards are chiefly based on unit-product consumption, the Measures set a temporary method on calculating the Over-standard Energy Consumption Fee, the principle of which is to impose fees according to the over-standard classes with correspondent benchmark prices. The calculation method will be amended and improved duly with the enactment of new energy consumption standards and the implementation of the Interim Measures itself.
Chen Yun:4. Management of the collection and expenditure of Over-standard Energy Consumption Fee. To facilitate supervision and management, the Measures stipulate that the collection of the Over-standard Energy Consumption Fee is to be localized, i.e. to be levied by relevant administrative or supervision departments of city level government with subordinate districts and the whole amount of collection shall be handed over to the Financial Bureau of the same level, with no assignment to the county level and no involvement from Financial Bureau of Shandong Province. The expenditure of the collected Over-standard Energy Consumption Fee is to be supervised by all relevant departments jointly according to the relevant regulations of the Financial Bureau.
Chen Yun:5.The relationship between the progressive price markup system and the discriminatory electricity price. According to stipulations of the NOTIFICATION OF NATIONAL DEVELOPMENT AND REFORM COMMISSION FORWARDED BY STATE COUNCIL ON IMPROVING THE POLICY OF DIFFERENT ELECTRICITY PRICE (Issued by the State Council [2006] No.77), Discriminatory electricity price is to be carried out among energy consumption industries. The number of industries involved is to be increased to eight such as electrolytic aluminum, ferroalloy, calcium carbide, caustic soda, cement, steel and iron, yellow phosphorus, and zinc metallurgy from the original six.
Chen Yun:The progressive price markup of the enterprises that are to be eliminated is raised to RMB0.2/kWh from RMB0.05/kWh, markup of limited enterprises is raised to RMB0.05/kWh from RMB0.02/kWh, and the income is to be handed over in full amount to the Ministry of Finance. To avoid intersection of policies and repeated charging, the Interim Measures stipulates that temporarily the progressive price markup system is not applicable to the enterprises imposed with Different Electricity Price.
Chen Yun:III. To further reform on resource environment price and enhance energy-saving and resource-conserving by the leverage of price.
Focusing on energy-saving and resource-conserving, the following five aspects should be paid close attention to in the near future for all levels of the Price Bureau:
Chen Yun:1. To further the reform on electricity price and enhance energy-saving, resource-conserving, the reduction of emissions and the adjustment of structure.
2. To rationalize prices of refined oil and natural gas, and to enhance the saving of both resources.
3. To implement a dual price policy of both support and restriction, and to enhance the comprehensive utilization of resources.
4. To reform the prices of public utilities in an active but stable way, and try to ease the influences on people’s life that the reform of resource environment price causes.
5. To strengthen the supervision and control over cost, and to ensure the effective implementation of over-standard energy consumption progressive price markup system.
Chen Yun:IV. To improve leadership and plan carefully to ensure the comprehensive implementation of energy consumption progressive price markup system.
Chen Yun:It''s complicated in procedure and comprehensive in range to set up the energy consumption progressive price markup system. All city governments should shape their own courses duly in time. Under the leadership of the CPC Party Committee and Government, all relevant departments should collaborate to implement the new price policy while rationally dividing their responsibilities.
Chen Yun:For those energy consumption enterprises, equipment and production methods that are to be eliminated according to state regulations, plans must be made for improvement aside from the progressive price markups. Those who should fail in improvement must be closed down or restructured step by step legally. Attention should be given to industries such as power generation, petroleum refinery, iron and steel, chemical fertilizer, cement, and aluminum processing. to look for a breakthrough that may bring about an overall improvement.
Thanks!
Zhang Dekuan:Now it is time for you to ask questions. Please introduce yourself first and make your questions concise.
Resource-saving is both a principal national policy of China and an obligatory responsibility for all citizens. The Measures as a progressive markup system on over-standard energy consumption are an important step taken by both the CPC Provincial Committee and the Provincial Government to further enhance resource-conserving and energy-saving. I hope the Interim Measures could be well publicized with your help and further reports could be given from you on those new achievements and new experiences involved in the field.
Zhang Dekuan:The news conference is over. Thanks.