Jiangxi Introduces 2-Hour Midday Low Tariff to Encourage Energy Storage in Commercial and Industrial Sectors

On April 25, the Jiangxi Development and Reform Commission issued a notice regarding the further improvement of the time-of-use electricity pricing mechanism. This includes the introduction of a new two-hour afternoon low tariff for all months except winter. The proportion of low tariffs has been expanded from a 60% reduction to a 70% reduction compared to the flat rate. The adjusted proportions for peak, flat, and low tariffs throughout the year will be standardized to 1.6:1:0.4.

The new pricing strategy encourages industrial and commercial users to invest in energy storage and engage in integrated energy utilization to reduce electricity consumption during peak hours while increasing usage during low tariff periods. This shift aims to lower overall electricity costs by modifying usage patterns. The specific time-of-use prices for each month are illustrated in the accompanying chart.

The profits and losses resulting from the implementation of time-of-use electricity pricing for industrial and commercial users will be factored into the operational costs of the system and shared among all commercial users on a monthly basis. After the trial operation of the continuous settlement of spot prices, any profits or losses incurred by users purchasing electricity through agents will also be shared among those users.

The announcement invites public and corporate feedback on the draft of the notice, which aims to enhance the guiding role of peak and low tariff policies and support the construction of a new power system centered on renewable energy. Feedback is welcomed until May 25, 2025, and can be sent via email to jxfgwjgc@126.com, including your name, organization, and contact information.

Key adjustments detailed in the notice include:

1. Optimization of Peak and Low Time Periods: The scheduling of peak and low periods will be adjusted seasonally based on electricity supply and demand. The revised time periods will be as follows:
   • January and December: Peak (including peak peak) from 09:00-12:00 and 18:00-21:00, with peak peak from 18:00-20:00; low period from 00:00-06:00; other times are flat periods.
   • February: Peak from 16:00-22:00; low from 00:00-06:00; other times are flat.
   • July to September: Peak (including peak peak) from 17:00-23:00, with peak peak from 21:00-23:00 in July and August; low (including deep low) from 01:00-05:00 and 11:30-14:30, with deep low from 12:00-14:00; other times are flat.
   • March to June and October to November: Peak from 16:00-22:00; low (including deep low) from 01:00-05:00 and 11:30-14:30, with deep low from 12:00-14:00; other times are flat.
2. Adjustment of Floating Ratios and Base Prices: The flat rate for industrial and commercial users will be based on the market-based transaction price, including line loss costs, transmission and distribution prices, system operating costs, and government funds. The annual floating ratio for peak, flat, and low tariffs will be standardized to 1.6:1:0.4, with the deep low floating ratio expanding from a 60% reduction to 70%. The peak floating ratio will remain an 80% increase from the flat rate.
3. Optimization of Implementation Scope: The policy will fully implement the national time-of-use pricing requirements and resume the application of time-of-use pricing for general industrial and commercial users previously suspended. This will apply to all users except for certain categories like electrified railway traction and specific welfare enterprises. Following the trial of continuous settlement, participants in spot trading will generally no longer be subject to industrial and commercial time-of-use pricing.

Other considerations include:

• For contracts signed prior to this notice, adjustments must be made by the Jiangxi Power Trading Center to ensure compliance with market trading rules.
• Encouragement for industrial and commercial users to reduce peak load and increase low period usage through energy storage and integrated energy solutions.
• Power grid enterprises must expedite the adjustment of metering and billing systems, informing users of any changes in advance.
• Local development and reform commissions and power companies should effectively organize and promote the importance of time-of-use pricing in supporting energy transition and ensuring efficient power system operations.

This notification will take effect on May 1, 2025, and any discrepancies with existing policies will be resolved in favor of this notification. Future national policies will supersede this notice as applicable.