I. Industrial and Commercial Electricity Pricing Policy

The industrial and commercial electricity tariff schedule is abolished. Effective March 9, 2022, electricity prices for industrial and commercial users will be determined through market-based transactions. Accordingly, the scheduled sales tariffs for large-scale industrial, general industrial and commercial, and other electricity consumption categories are hereby abolished. All industrial and commercial users with a voltage level of 10 kilovolts or higher must enter the market; other industrial and commercial users should do so as soon as possible. For those not yet directly participating in market transactions, power grid companies will act as agents for electricity procurement in accordance with the *Guidelines for Power Grid Companies’ Agency Electricity Procurement (Trial)*.For general industrial and commercial users not directly supplied by the grid, the benchmark electricity price shall be the market-based end-user price or the grid company’s agency-purchased end-user price.Time-of-use pricing shall apply to large industrial, general commercial and industrial, and other electricity consumption (excluding traction power for electrified railways as explicitly stipulated by the state). The time-of-use periods shall be optimized; in addition to peak, off-peak, and low-peak periods, a new "super-peak" period with a super-peak rate shall be introduced. Peak and low-peak rates shall each fluctuate by 65% above or below the off-peak rate, while the super-peak rate shall be 20% higher than the peak rate.

— "Notice of the Autonomous Region Development and Reform Commission on Issuing the <Plan for the Autonomous Region to Implement Further Market-Oriented Reform of Grid-Connected Electricity Prices for Coal-Fired Power Generation>" (Xin Fa Gui [2022] No. 6)

— "Notice of the Autonomous Region Development and Reform Commission on Matters Concerning the Agency Power Purchase Work of Grid Enterprises" (Xin Fa Gai Han [2022] No. 2)

II. Electricity Price Policies for Agricultural Production

(1) Electricity Prices for Agricultural Production

The electricity price for agricultural production in the Kashgar Prefecture shall be 0.312 yuan/kWh, in accordance with the Xinjiang Power Grid’s catalog sales price for agricultural production electricity.

— "Notice of the Autonomous Region Development and Reform Commission on Issuing the <Plan for the Autonomous Region to Implement the Further Deepening of Market-Oriented Reform of Grid-Connected Electricity Prices for Coal-Fired Power Generation>" (Xin Fa Gui [2022] No. 6)

(2) Scope of Application for Agricultural Production Electricity Rates

1. Agricultural electricity: Refers to electricity used for various crop cultivation activities. This includes electricity used for the cultivation of grains, legumes, tubers, cotton, oilseeds, sugar crops, hemp, tobacco, vegetables, edible fungi, horticultural crops, fruits, nuts, oil-bearing fruits, beverage and spice crops, medicinal herbs, and other agricultural crops.

2. Electricity for Forest Tree Cultivation and Planting: Refers to electricity used for activities such as forest tree breeding and seedling propagation, afforestation and reforestation, and forest management and protection. Among these, electricity for forest management and protection refers to electricity used for activities promoting the growth and development of forest trees during different stages of their growth.

3. Electricity for livestock and poultry farming: Refers to electricity used for animal husbandry activities aimed at producing various livestock and poultry products. This excludes electricity used for raising livestock and poultry specifically for sports, recreational, or similar activities.

4. Electricity for fisheries: Refers to electricity used for the cultivation and harvesting of various aquatic animals in inland waters, as well as the cultivation and harvesting of various aquatic plants and animals in seawater. This excludes electricity specifically used for sports activities, recreational fishing, and the processing of aquatic products.

5. Electricity for Primary Processing of Agricultural Products: Refers to electricity used for dehydrating, solidifying, de-seeding, cleaning, sorting, sun-drying, peeling, preliminary roasting, softening, or bulk packaging of various agricultural products (including natural rubber and raw materials for textile fibers) to supply the primary market.This primarily includes: (1) Electricity for primary processing of grains, which refers to electricity used for the cleaning, sun-drying (or kiln-drying) of grains such as wheat, rice, and sorghum; the screening and sun-drying (or kiln-drying) of corn; the washing and peeling of tubers; and the collection, baling, cutting, shredding, and briquetting of crop straw;and the cleaning, sorting, soaking, and drying (including kiln drying) of edible legumes. (2) Electricity for the primary processing of vegetables and flowers, which refers to the electricity used for washing and sorting fresh vegetables and flowers.(3) Electricity consumption for the primary processing of forest fruits refers to electricity used for the washing, peeling, sorting, and initial roasting or drying of fresh forest fruits (including red dates, walnuts, sea buckthorn, goji berries, apricots, plums, grapes, etc.).(4) Electricity used for the primary processing of fiber textiles refers to the electricity consumed for cotton seed removal (processing lint), retting of hemp, sorting of silkworm cocoons, and drying (sun-drying or machine-drying). (5) Electricity used for the primary processing of medicinal plants refers to the electricity consumed for the selection, sorting, bundling, washing, and drying (sun-drying or machine-drying) of various medicinal plants.(6) Electricity for bulk packaging refers to the electricity used for bulk packaging of various agricultural products during the primary processing stage to supply the primary market.(7) Electricity for the primary processing of oilseeds refers to electricity used for cleaning, roasting, grinding,oil extraction (stirring, pressing), and solvent extraction, resulting in crude vegetable oil and by-products such as oilcake. (8) Electricity used for washing various sugar crops. (9) Electricity used for the preparation of raw tea or semi-finished tea materials. (10) Electricity used for removing impurities and dehydrating natural rubber. (11) Electricity used for the initial curing of tobacco.

6. Electricity for agricultural product preservation and storage facilities (rural construction): Electricity used for preservation and storage facilities constructed in rural areas by family farms, farmers’ cooperatives, supply and marketing cooperatives, postal and express delivery enterprises, leading industrial enterprises, and agricultural product distribution enterprises.

7. Electricity for agricultural drainage and irrigation: Refers to electricity used for drainage, irrigation, and flood control in service of agricultural production. This includes electricity for flood control, water supply for rural drinking water safety projects, high-lift deep well pumping, temporary flood control lighting, wind and sand control, and well drilling and water pumping for afforestation of barren hills.

——"Notice of the Autonomous Region Development and Reform Commission on Adjusting the Scope of Application for Electricity Price Categories" (Xin Fa Gui [2021] No. 1)

III. Policies for Electricity Users Participating in Market-Based Transactions

In 2022, electricity users’ participation in market-based transactions shall be implemented in accordance with the “Implementation Plan for Direct Electricity Transactions in the Xinjiang Uygur Autonomous Region in 2022.” In the Southern Xinjiang region, industrial and commercial electricity users with an annual electricity consumption of 3 million kWh or more and a connection voltage level of 10 kV or higher are classified as large users and may purchase electricity directly from power generation enterprises; users other than large users are classified as small and medium-sized users and, in principle, may only purchase electricity from power retailers or purchasing agents.Prior to registering on the Xinjiang Power Trading Platform, market entities must meet the access criteria established by the autonomous region and complete relevant procedures—including making commitments, publicizing information, registering, and filing—in accordance with the autonomous region’s relevant regulations. Users with an annual electricity consumption of 50 million kWh or more may participate in both annual and monthly transactions, while other users may only participate in monthly transactions.

—Notice of the Autonomous Region Development and Reform Commission on Issuing the “Implementation Plan for Direct Electricity Trading in the Xinjiang Uygur Autonomous Region in 2022” (Xin Fa Gai Neng Yuan [2021] No. 548)

IV. Support Policies for Basic Electricity Fee Exemptions in Selected Environmental Protection Industries

(1) Basic Electricity Charges for Wastewater Treatment Enterprises. Wastewater treatment enterprises in our region that adopt a two-part tariff system are exempt from demand (capacity) charges until the end of 2025.

(2) Basic Electricity Charges for Centralized Electric Vehicle Charging and Battery Swapping Facilities. Capacity charges for electricity consumed by centralized electric vehicle charging and battery swapping facilities are currently waived until the end of 2025.

——"Notice of the Autonomous Region Development and Reform Commission on Clarifying Matters Related to Electricity Prices for Certain Environmental Protection Industries" (Xin Fa Gui [2020] No. 7)

V. Special Electricity Tariff Policies for Textile Enterprises

Textile and apparel industrial enterprises shall continue to implement special electricity pricing policies, with a uniform comprehensive on-site electricity rate of 0.38 yuan/kWh applied to enterprise production electricity consumption.

——Notice of the Autonomous Region Development and Reform Commission on Matters Concerning Electricity Prices for Textile and Apparel Industrial Enterprises (Xin Fa Gai Neng Jia [2014] No. 2340)

——Notice of the Development and Reform Commission of the Autonomous Region on Issuing the “Implementation Plan for Further Deepening Market-Oriented Reform of Grid-Connected Electricity Prices for Coal-Fired Power Generation in the Autonomous Region” (Xin Fa Gui [2022] No. 6)

VI. Special Electricity Tariff Policy for Labor-Intensive Enterprises

Labor-intensive manufacturing enterprises in the four prefectures of Southern Xinjiang—including those producing consumer electronics, footwear and headwear, toys, wigs, luggage, and leather goods—shall be included in the scope of special electricity pricing policies. Based on the autonomous region’s established comprehensive on-site electricity price of 0.38 yuan/kWh, and using the user’s actual electricity price of 0.35 yuan/kWh as the starting point, a subsidy of 0.03 yuan/kWh shall be provided for the difference in electricity prices.

— General Office of the People’s Government of the Autonomous Region, “Notice on Further Improving Policies for Labor-Intensive Industries such as Textiles and Apparel in the Autonomous Region” (Xin Zheng Ban Fa [2019] No. 105)