International experience shows that the path of "legislation before and after reform" is an important guarantee for the success of power reform. People's Republic of China electric power law implemented since April 1, 1996 "(hereinafter referred to as the" power law ") has been nearly twenty years, some of the provisions of the practice and development of electric power industry and the change of phase out, which need to modify, in order to adapt to the needs of the development of electric power industry. In April 24th this year, the National People's Congress passed to amend the "power law" six laws, which in the "power law" revision, deletion of the original twenty-fifth paragraph third of the "power supply agency shall apply to the administrative department for Industry and Commerce issued a business license to" power supply business license ", before operating". This is generally accepted by scholars as "just a start", and there will be a lot of changes to follow, and the process will be accelerated. In practice, some reform measures lack the legal basis and even contradict the relevant provisions in the existing laws and regulations. For example, the lack of legal basis for the reform of direct power purchase for the large users, because it violates the basic principles of the current and even bargain; the price formation mechanism and the power grid monopoly business, the main legal basis is the "power law" in a series of regulations on licensing system of power supply business area and power supply business franchise system, so in the future in order to realize the mechanism of electricity price, decided to let the market price guide system of investment and consumption, the establishment of power grid without discrimination, open access system, energy saving, low carbon target, are required to amend laws and regulations of the original.

"First take after the card" model will allow more electricity suppliers to enter the electricity market

The "power supply business license" refers to the legal license for the power supply business organization to supply power to the users in the power supply business area approved by the power management department. This system has been implemented since the power law of 1996. In the "power law" before the amendment, the power supply enterprise before obtaining the business license, need to submit an application to the local competent authorities, and prepare the basic situation, including the power supply enterprise power supply area layout, power supply capacity and geographical distribution, the sale of electricity price and on the basis of a number of materials. After obtaining the "power supply business license", the business sector shall apply for a business license before it can be opened. If the power supply business license is not obtained in accordance with the provisions, and the power supply business is carried out, the power administrative department will confiscate the illegal gains and may impose a fine of not more than 5 times the illegal income. Such a "threshold" allows only a small number of enterprises to engage in power operations.

The newly revised "power law" delete this provision, release the sale distribution side, "the examination and approval power supply business license" after the shift, to encourage investment in social capital distribution business, the gradual liberalization of investment increment distribution business to meet the conditions of the market subject; gradually liberalized electricity sales side, the construction of diversified sale subject intends to carry out power distribution business market main body, can apply to the business sector to obtain a business license, and then apply for the "power supply business license", which can help enterprises in the early focus on business, also entered the power supply business area has been divided into good power increment, provides a more open condition. It is worth noting that this modification of the "power law" of the content, and not to cancel the "power supply business license" approval, only the business registration pre-approval to post approval, from the influence of the power industry, the sale of electricity to modify only the subject, lowering the threshold, in order to further promote the the sale of electricity reform and lay a legal basis, the subsequent repair method is still a lot of room.