On January 20, the Henan Provincial Development and Reform Commission issued the "Notice on Adjusting the Peak and Off-Peak Floating Base for Industrial and Commercial Time-of-Use Electricity Rates in Our Province (Draft for Comments)" (hereinafter referred to as the "Draft").

Users directly participating in electricity market transactions are no longer subject to the time-of-use pricing policy for commercial and industrial electricity. To promote fair competition in the electricity market, effective from the month following the issuance of this notice, grid companies in Henan Province that procure electricity on behalf of users under the time-of-use pricing policy for commercial and industrial electricity will no longer have their transmission and distribution tariffs subject to peak-valley fluctuations. Other matters such as peak-valley periods and floating ratios shall continue to be implemented in accordance with the provisions of the "Notice of the Henan Provincial Development and Reform Commission on Adjusting Time-of-Use Pricing for Commercial and Industrial Electricity" (Henan Development and Reform Price Management Document No. 283 [2024]).

According to Document No. 283, the components of electricity prices subject to peak-valley time-of-use rate fluctuations are: the sum of market trading feed-in tariffs (average feed-in tariffs for agency power purchases) and transmission and distribution tariffs multiplied by the peak-valley fluctuation ratio (note that the capacity (demand) tariffs within transmission and distribution tariffs are not subject to peak-valley fluctuations). The "draft opinion" proposes a change to include only the market trading feed-in tariffs (average feed-in tariffs for agency power purchases) in the fluctuation.