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