International experience has shown that the path of "legislation first, reform later" is an important guarantee for the success of power reform. The Electricity Law of the People's Republic of China (hereinafter referred to as the "Electricity Law"), which has been implemented since April 1, 1996, has been in effect for nearly 20 years. Some of its provisions are detached from the practice of the development and changes of the electricity industry, and it is urgent to revise them to meet the needs of the development of the electricity industry. On April 24th of this year, the National People's Congress approved the decision to amend six laws including the Electricity Law. Among them, in the revision of the Electricity Law, the original Article 25, paragraph 3, which stated that "power supply business institutions can only operate by applying for a business license from the administrative department for industry and commerce with the Power Supply Business License" was deleted. Scholars generally believe that this is just the beginning, and there will be a lot of content that needs to be revised in the future, and the process will be accelerated. In practice, some reform measures lack legal basis and even contradict relevant provisions in current laws and regulations. For example, the reform of direct electricity purchase by large users lacks relevant legal basis because it violates the basic principles of fair trade; As for the current electricity price formation mechanism and monopolistic operation of the power grid, the main legal basis lies in a series of provisions in the Electricity Law regarding the licensing system for power supply business areas and the exclusive operation system for power supply business. Therefore, in the future, in order to enable market mechanisms to determine electricity prices, guide investment and consumption systems through electricity prices, establish a non discriminatory and open access system for the power grid, and achieve energy-saving and low-carbon goals, it is necessary to revise existing laws and regulations.
The "Power Supply Business License" refers to the legal permit for power supply business institutions to supply power to users within the approved power supply business area by the power management department. This system has been implemented since the 1996 "Electricity Law". Before the revision of the Electricity Law, power supply enterprises needed to submit an application to the local competent department and prepare multiple materials including the basic information of the power supply enterprise, geographical plan of the power supply area, power capacity and distribution map, electricity sales price and its basis before obtaining a business license. After obtaining the "Power Supply Business License", one must apply to the industry and commerce department for a business license before being able to operate. Those who engage in power supply business without obtaining the "Power Supply Business License" in accordance with regulations will have their illegal gains confiscated by the competent power department and may be fined up to five times the amount of the illegal gains. This' threshold 'allows only a few companies to engage in electricity operations.
The newly revised Electricity Law has removed this provision, opened up the sales and distribution side, moved the approval of the Power Supply Business License, encouraged social capital investment in distribution business, and gradually opened up incremental distribution investment business to eligible market entities; Gradually opening up the electricity sales side and building diversified electricity sales entities. Market entities interested in carrying out electricity distribution business can first apply for a business license from the industry and commerce department, and then apply for a "Power Supply Business License". This can help enterprises concentrate on conducting business in the early stage and provide more open conditions for electricity increment to enter the already divided power supply business area. It is worth noting that the content of this amendment to the Electricity Law is not to cancel the approval of the Power Supply Business License, but to change the pre-approval items of industrial and commercial registration to post approval. From the impact on the electricity industry, this amendment only lowers the threshold for electricity sales entities to enter the market, laying a legal foundation for further promoting the reform of the electricity sales side. There is still a lot of room for subsequent amendments to the law.