All relevant units and individuals:
In order to implement the national and Anhui natural gas price marketization reform spirit, the Municipal Development and Reform Commission drafted the Implementation Plan of Huaibei Natural Gas Upstream and Downstream Price Linkage Mechanism (Draft for Comments). In order to fully absorb the opinions and suggestions of all parties and improve public participation, we are now asking for public opinions. Relevant units and people from all walks of life are requested to send their opinions and suggestions to the mailbox before May 8, 2024 1220453391@qq.com (For the units and individuals who put forward opinions, please indicate the name, name or contact number of the unit).
Contact: Zhang Ming, Ma Huimei Tel: 0551-3053362 (3053960)
Online solicitation: online solicitation through this page
Appendix: Implementation Plan of Huaibei Natural Gas Upstream and Downstream Price Linkage Mechanism (Draft for Comments)
Explanations on the drafting of the Implementation Plan for the Upstream and Downstream Price Linkage Mechanism of Natural Gas in Huaibei City (Draft for Comments). docx
Huaibei Development and Reform Commission
April 8, 2024
Price linkage mechanism of upstream and downstream natural gas in Huaibei City Implementation plan
(Draft for Comments)
In order to further promote the market-oriented reform of natural gas prices in our city, improve the natural gas price formation mechanism, promote the terminal sales price to reflect the changes in market supply and demand sensitively, ensure the safe and stable supply of gas, and promote high-quality economic and social development, according to the Notice of Anhui Provincial Development and Reform Commission on Printing and Distributing the Implementation Plan of Deepening the Price Mechanism Reform during the 14th Five Year Plan Period in Anhui Province (WFGJG [2021] No. 517) and the Notice of Anhui Provincial Development and Reform Commission on Issues Related to Establishing and Improving the Upstream and Downstream Natural Gas Price Linkage Mechanism (WFGJG [2023] No. 221) require that the implementation plan of the upstream and downstream natural gas price linkage mechanism in Huaibei City be formulated in accordance with the reform direction of "controlling the middle and opening up both ends" and the actual situation of our city.
1、 Basic principles
（1） Security first. Based on promoting the coordinated development of the upstream and downstream of the natural gas industry, establish a gas storage capacity compatible with the gas supply capacity, improve the upstream and downstream price linkage mechanism, effectively reflect the cost changes of urban gas enterprises, stabilize the supply and demand relationship of the natural gas market, and ensure the demand for gas for people's livelihood.
（2） Simultaneous linkage. Corresponding linkage is implemented, and the downstream terminal sales price is adjusted synchronously in the same direction with the change of the upstream gas source purchase cost.
（3） All things considered. Comprehensively consider national, provincial and municipal policies, socio-economic development level, user affordability and other factors.
2、 Linkage content
（1） Linkage scope
The upstream and downstream price linkage of natural gas refers to the linkage between the terminal sales price and the purchase price. The terminal sales price of natural gas consists of the purchase price (including transportation costs, taxes, the same below) and the gas distribution price. In principle, the purchase price refers to the average price of all gas sources purchased by gas enterprises in the same region.
When the upstream gas source price purchased by the gas enterprise is significantly higher than the fair market price, the higher part of the gas source price will not be linked. The market fair price can comprehensively consider the weighted average price of gas auctioned in the east of Shanghai Oil and Gas Trading Center in the current month, the reference price of natural gas transaction issued by the authority, the average price of surrounding areas, etc.
（2） Linkage cycle
In principle, the linkage adjustment cycle of residential gas consumption is 12 months, in which the adjustment shall not exceed once per linkage cycle. In principle, the linkage adjustment cycle of non residential gas consumption is adjusted monthly or quarterly.
（3） Price adjustment
The terminal sales price is adjusted in the same direction as the purchase price. The single increase of residential gas terminal sales price shall not exceed the relevant policies and regulations of Anhui Province (no more than 0.50 yuan per cubic meter), and the reduction is unlimited. The amount exceeding the unadjusted amount shall be included into the overall consideration of the next linkage cycle. When the market purchase price continues to rise, which may have a serious adverse impact on the normal life of residents and the smooth operation of the economy, the linkage can be temporarily suspended.
The gas distribution price shall be subject to the annual cost supervision system, which shall be checked and adjusted on an annual basis. When the gas distribution price is adjusted, the terminal sales price is adjusted synchronously, which is not limited by the linkage mechanism.
（4） Linkage formula
Price linkage adjustment amount=(comprehensive weighted average purchase price of the current period - comprehensive weighted average purchase price of the previous period) ÷ (1 - supply and marketing margin)+amount that should be linked but not linked or deviation amount of the previous period.
Current terminal sales price=last terminal sales price+price linkage adjustment amount.
The supply and marketing difference rate shall be determined by the municipal development and reform department according to the actual supply and marketing difference of the gas enterprise in the previous year, and the maximum shall not exceed 4%.
3、 Operating procedures
The Municipal Bureau of Housing and Urban Rural Development shall apply to the Municipal Development and Reform Commission for the price adjustment of residential gas. The Municipal Development and Reform Commission shall calculate the adjustment amount according to the above linkage formula, propose the adjustment plan, and organize the implementation after the approval of the municipal government. At the same time, it shall make public announcements.
For the price adjustment of non residential gas, the gas enterprise shall submit the purchase cost, gas consumption and other relevant data as well as the original contract, settlement invoice and other materials to the Municipal Development and Reform Commission. After the review of the Municipal Development and Reform Commission, the executive price shall be calculated and determined according to the above linkage formula, and the public announcement shall be made.
4、 Relevant requirements
（1） Strengthen supervision according to law. The municipal development and reform, housing construction, market supervision and other departments irregularly carry out joint inspection on the contracts, invoices, gas volume data and other materials provided by gas enterprises, falsely report and conceal information from urban gas enterprises, increase sales prices, compulsory services, bundle sales and other illegal acts without authorization, investigate and deal with them according to law, and maintain normal market order.
（2） Control purchase cost. The municipal development and reform department should strengthen the supervision of gas purchase cost and timely track the fluctuation of natural gas purchase price; Gas enterprises should pay close attention to the trend of natural gas market, fully predict the periodic natural gas demand in the business area, purchase natural gas at a reasonable price, and effectively control the cost of gas source procurement.
（3） Make information public. The Municipal Development and Reform Commission shall work with relevant municipal departments and gas enterprises to publicize and explain the price linkage policy, and timely disclose the price linkage results to the public through departmental websites, public accounts, etc. The gas enterprise shall timely, completely and accurately report the price and cost information required for linkage, and regularly publish the source, quantity and price of gas purchase on the enterprise portal or business site.
（4） Secure the bottom line of people's livelihood. The preferential gas price policy will continue to be implemented for low-income people, and eligible users can enjoy the corresponding preferential fee reduction policy after registering with the gas enterprise with relevant certificates. In accordance with the relevant provincial and municipal regulations, continue to implement the policy of linking the volume and price of non resident natural gas.
This plan shall be implemented from the date of the original document, and shall be revised and improved according to the actual situation in the implementation process. In the future, if the state and the province have new policies and regulations on the price adjustment of residential and non residential gas consumption, they shall be followed and not subject to the linkage mechanism.
