Proceedings of the 4th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2022, December 9-11, 2022, Chongqing, China

Research Article

The Influence of Transmission and Distribution Electricity Price Reform on Power Grid Enterprise Investment and Its Solution-Calculation Based on EVA Model

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  • @INPROCEEDINGS{10.4108/eai.9-12-2022.2327688,
        author={Liang  Hu and Yi  Ye and Hao  Fu and Zhiwei  Zhang and Bingyi  Liu and Jianfei  Shen and Peng  Liu and Feiyu  Chen and Er  Wang and Jinhan  Wu},
        title={The Influence of Transmission and Distribution Electricity Price Reform on Power Grid Enterprise Investment and Its Solution-Calculation Based on EVA Model},
        proceedings={Proceedings of the 4th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2022, December 9-11, 2022, Chongqing, China},
        publisher={EAI},
        proceedings_a={MSIEID},
        year={2023},
        month={3},
        keywords={transmission and distribution price reform; power grid enterprise investment; economic value added; analysis of investment data},
        doi={10.4108/eai.9-12-2022.2327688}
    }
    
  • Liang Hu
    Yi Ye
    Hao Fu
    Zhiwei Zhang
    Bingyi Liu
    Jianfei Shen
    Peng Liu
    Feiyu Chen
    Er Wang
    Jinhan Wu
    Year: 2023
    The Influence of Transmission and Distribution Electricity Price Reform on Power Grid Enterprise Investment and Its Solution-Calculation Based on EVA Model
    MSIEID
    EAI
    DOI: 10.4108/eai.9-12-2022.2327688
Liang Hu1, Yi Ye1, Hao Fu1, Zhiwei Zhang1, Bingyi Liu1, Jianfei Shen2, Peng Liu2,*, Feiyu Chen2, Er Wang2, Jinhan Wu2
  • 1: State Grid Zhejiang Electric Power Co., LTD. Hangzhou Power Supply Company
  • 2: North China Electric Power University
*Contact email: 120222106022@ncepu.edu.cn

Abstract

Transmission and distribution electricity price reform (TDEPR) is an important process of China's electricity price reform, which directly changes the profit model of the power grid enterprises (PGEs) by breaking the monopoly of them in “purchasing” and “selling” and liberalizing the sales side of electricity. These changes make an impact on the investment and operation model of “PGEs”. This paper is talking about the results of the power grid reform. Based on the change of cost composition and accounting mode of the “PGEs” after the “TDEPR”, this paper analyses the impact of the “TDEPR” on the investment of the “PGEs” from four perspectives: investment scale, investment structure, investment efficiency and the economic value added (EVA). It is found that the “PGEs” have problems such as too large investment scale, inaccurate cost control, failure to balance the proportion of long-term and short-term projects, low return but large pressure on short-term investment, sharp drop in return on assets (ROA), insufficient ability to respond to policy changes, and lack of asset management. In response to the above problems, this paper proposes the following measures. First, in terms of investment scale, it is recommended that the “PGEs” should strengthen investment cost control and improve investment precision.