Thermal power generation accounted for 78.58% in 2012 source: CLP Changjiang Securities

　　In recent years, the domestic economic growth slowed down and the demand continued to be low, leading to a sharp drop in coal prices and the end of the coal golden decade.
At present, with the continuous decline of coal price, which accounts for about 70% of the operating cost, the hard days of thermal power enterprises are gradually passing and spring is coming.
Thermal power has the attribute of public utilities. For the public utilities industry, the government regulatory agencies will determine a reasonable profit level range, and can not let it become a profiteering industry. When the profit level of thermal power industry is greatly deviated from the reasonable range due to the impact of external factors such as the sharp drop of coal price, the regulatory department should take measures to correct the deviation.
As a necessity of life and production, if the sales price of electricity is lowered, it can reduce the cost of enterprises, provide support for China's stable economic growth, reduce the pressure of people's life, and prevent the price rebound from too high.
According to the notice of the national development and Reform Commission, the electricity price is reduced to the national power grid price, and the sales price level remains unchanged.
At present, domestic electricity price includes on grid electricity price and terminal electricity price, and terminal electricity price includes civil electricity, commercial electricity and industrial electricity. The cut in the grid price has damaged the profits of power companies which have made great achievements this year, and roughly estimated that the industry will lose 50 billion yuan.
The power grid is the biggest beneficiary if the sales price is not lowered

Under the current electricity price control, the high profit of power grid enterprises is obvious

　　In the power reform in 2002, the State Power Corporation, which monopolized all the power industry in China, was divided into five power generation groups and two power grid companies, State Grid and China Southern Power Grid.
Due to the particularity of the power production industry, the product sales target is very single. The power generation enterprises provide electricity to the power grid companies, and then the power grid companies distribute it to consumers through the power line network.
At present, power plants are not allowed to sell electricity directly to enterprises, but only through the power grid, and both the generation and sale prices are approved by the government. The price difference between on grid electricity price and sales electricity price is the source of income for power grid enterprises. Power grid enterprises have the power to maintain enough price difference for their own profits.
The price cut means that the power grid companies buy power plants cheaper, while the sales price to consumers remains unchanged. The power grid will become the biggest beneficiary of the electricity price reduction. Among the power enterprises, power grids and users, the power grid is the most powerful and the most money free.
Data show that: in 2011, State Grid achieved a total profit of 53.3 billion yuan, an increase of 18% compared with 45 billion yuan in 2010, and the profit exceeded the total net profit of the five power generation groups. At the same time, in the 10 years since its establishment in 2002, China Southern Power Grid has realized profits and taxes of 271.2 billion yuan. The high profits of power grid companies can be seen.
At present, the huge profits of power grid come from its monopoly position, and the price of electricity itself is not transparent, which also makes the production and living costs of enterprises and users rise, which is not conducive to the optimal allocation of power resources and economic development.