Original Title: Notice from the Shanghai Municipal Commission of Economy and Informatization, the Shanghai Municipal Development and Reform Commission, and the Shanghai Municipal Finance Bureau on Issuing the "Implementation Measures for Differential Electricity Tariffs to Promote Industrial Restructuring in Shanghai"
Article 1 (Purpose and Basis)
To accelerate the phasing out of outdated production capacity, promote energy conservation and reduce consumption, advance the adjustment of the city’s industrial structure, and expedite the transformation of the economic development model, in accordance with the “Opinions of the National Development and Reform Commission on Comprehensively Deepening Price Mechanism Reform” (Fagui Jia [2017] No. 1941), the “Opinions of the National Development and Reform Commission on Innovating and Improving Price Mechanisms to Promote Green Development” (Fagui Jia Gui [2018] No. 943),the “Guiding Opinions of Sixteen Departments on Promoting the Phase-out of Outdated Production Capacity through Comprehensive Standards in Accordance with Laws and Regulations” (MIIT Joint Industry [2017] No. 30), the “Shanghai Regulations on Electricity Supply and Use,” and the “Several Opinions on Promoting the Efficient Allocation of Resources and Driving High-Quality Industrial Development in the Municipality” (Shanghai Municipal Government Document [2018] No. 41), and in light of the actual conditions of the municipality, these Measures are hereby formulated.
Article 2 (Definition of Differential Electricity Tariffs)
For the purposes of these Measures, “differential electricity rates” refer to the practice of charging enterprises an electricity rate higher than the standard rate, in accordance with relevant national and municipal industrial policies and applicable surcharge policies, for cases that meet the criteria for designation as subjects of differential electricity rates.
Article 3 (Criteria for Identifying Entities Subject to Differential Electricity Tariffs)
Differential electricity rates may be applied to enterprises that meet any of the following conditions:
(1) Enterprises listed in the “Restricted” or “Eliminated” categories of the national or municipal Industrial Structure Adjustment Guidance Catalog;
(2) Where the energy consumption per unit of product exceeds the mandatory limit standards promulgated by the state or the municipality;
(3) Enterprises identified as Category D (remediation and elimination) through the implementation of the resource utilization efficiency evaluation system by the various districts of this municipality and included in the industrial restructuring plan;
(4) Other cases specified in relevant national and municipal documents.
Article 4 (Surcharge Standards)
(1) Scope of Measurement
1. Where the electricity consumption of a subject to the surcharge can be separately metered via a billing meter installed by the municipal power company (in accordance with national metering standards), the differential electricity price shall be applied only to that subject’s electricity consumption.
2. Where the electricity consumption of the subject cannot be metered separately, the differential electricity price shall be applied to the total electricity consumption.
(2) Surcharge Standards
1. A surcharge of 0.20 yuan per kilowatt-hour shall be applied to electricity consumption by restricted-class facilities; a surcharge of 0.50 yuan per kilowatt-hour shall be applied to electricity consumption by phased-out-class facilities.
2. For facilities where energy consumption per unit of product exceeds the limit standard by up to one times (inclusive), the surcharge standard for restricted-class facilities shall apply; for facilities where energy consumption per unit of product exceeds the limit standard by more than one times, the surcharge standard for phased-out-class facilities shall apply.
3. For enterprises classified as Category D (rectification and elimination) under the resource utilization efficiency evaluation system and included in the industrial restructuring plan, a surcharge of 0.50 yuan per kilowatt-hour shall apply to the enterprise’s total electricity consumption.
Where multiple circumstances described in Article 3 (Assessment Criteria) of these Measures apply, the highest applicable standard shall be applied, but no duplicate surcharges shall be imposed.
Article 5 (Division of Responsibilities)
The Shanghai Municipal Commission of Economy and Information Technology (hereinafter referred to as “the Municipal Commission”) is responsible for the overall coordination of the formulation and improvement of differential electricity pricing policies, and for researching, formulating, and adjusting the scope of application of differential electricity pricing in accordance with national requirements regarding the phasing out of backward production capacity and the resolution of excess production capacity.
The Shanghai Municipal Commission of Development and Reform (hereinafter referred to as “the Municipal Commission of Development and Reform”) is responsible for formulating and adjusting the surcharge standards for differential electricity rates, as well as performance evaluations.
The Shanghai Municipal Finance Bureau (hereinafter referred to as “the Municipal Finance Bureau”) is responsible for the accounting, management, disbursement, and supervision of electricity revenue generated by differential electricity pricing.
The people’s governments of each district are responsible for the coordinated implementation of the differential electricity pricing policy.
Article 6 (Operational Procedures)
(1) Screening
The industrial departments of each district shall, based on the criteria for determining differential electricity rates, screen and propose a list of enterprises eligible for differential electricity rates, and make such list public. Based on the results of the public notice, they shall finalize the list of enterprises eligible for differential electricity rates, submit it to the Municipal Commission of Economy and Informatization, and notify the enterprises selected for differential electricity rates.
(2) Implementation
The Municipal Commission of Economy and Information Technology shall notify the Municipal Power Company to collect differential electricity charges based on the lists of enterprises submitted by each district. The Municipal Power Company shall collect differential electricity charges on a monthly basis.
(3) Exit
When a project introduced after an adjustment complies with the city’s relevant industrial regulations, or when it meets such regulations through renovation and upgrading, the relevant entity may submit a written application to the district industrial department requesting the cessation of differential electricity pricing. Upon verification by the relevant departments that the conditions for exit are met, the application is submitted to the Municipal Commission of Economy and Information Technology to cease the application of differential electricity pricing; if the conditions are not met, differential electricity pricing continues to apply.
Article 7 (Collection of Electricity Charges)
The Municipal Power Company shall collect differential electricity charges in a timely and full manner in accordance with the list of enterprises subject to differential electricity pricing. It shall maintain separate accounts for revenue from differential electricity charges and monitor the daily electricity consumption of enterprises subject to differential electricity pricing.
The Municipal Power Company must, within 10 working days after the end of each month, remit the full amount of electricity revenue generated by the differential electricity rates to the municipal treasury, where it shall be incorporated into the municipal budget.
Article 8 (Supervision and Management)
The industrial departments of each district shall be responsible for daily management and shall report annually to the Municipal Commission of Economy and Information Technology on the implementation of differential electricity rates in their respective districts; if any major issues are discovered, they shall report them promptly.
The Municipal Power Company shall be responsible for monitoring the electricity consumption and fee collection of enterprises subject to differential electricity rates, and shall promptly report relevant information to the Municipal Commission of Economy and Information Technology and the Municipal Development and Reform Commission.
The Municipal Commission of Economy and Information Technology, in conjunction with relevant member units of the Municipal Industrial Park and Structural Adjustment Leading Group, shall conduct supervision and inspection of the implementation of differential electricity rates in each district.
Article 9 (Use and Supervision of Funds)
The additional electricity revenue generated by the differential electricity rates shall serve as one of the sources of the city’s special fund for energy conservation and emission reduction, to be used exclusively for the city’s energy conservation and emission reduction initiatives; supervision and management shall be carried out in accordance with relevant regulations.
Article 10 (Handling of Violations)
If relevant departments, institutions, or enterprises engage in violations such as underreporting, falsifying, or tampering with data, or defrauding, misappropriating, or withholding special funds, they shall be dealt with in accordance with relevant laws, regulations, and provisions.
Article 11 (Dispute Resolution)
If enterprises subject to differential electricity rates have objections regarding the implementation process, such matters shall primarily be handled and resolved by the relevant departments of each district, with the Municipal Commission of Economy and Information Technology providing guidance and coordination; legal disputes arising from the implementation of differential electricity rates shall be resolved in accordance with relevant legal procedures.
Article 12 (Supplementary Provisions)
The Municipal Commission of Economy and Information Technology, the Municipal Development and Reform Commission, and the Municipal Finance Bureau shall be responsible for interpreting these Measures.
These Measures shall take effect on May 17, 2021, and remain valid until May 16, 2026.
