Henan Chemical Enterprises Expect to Determine Rationally Energy Quota

The Provisional Measures for the Compensated Use and Transaction Management of Energy Use Rights in Henan Province promulgated by the Henan Provincial Government has been in effect for more than a month, and energy use rights transactions have been carried out throughout the province. Reporter interviews and surveys have learned that the benchmark index of coal used by chemical and coking enterprises in the province is set for 2015, which is no longer suitable for the development needs of enterprises. Coal chemical enterprises expect relevant departments to work out fair and reasonable quotas and energy purchase prices from the reality. It is known that Henan Province is one of the four pilot provinces of paid use and trade of energy rights in China. Last year, Henan Province chose Zhengzhou, Pingdingshan, Hebi and Jiyuan to carry out pilot work. This year, it expanded to the whole province. According to the Measures, the allocation of the quota of energy use rights in Henan Province takes the annual comprehensive energy consumption as the right type, takes the ton of standard coal as the measurement unit, and takes coal as the main right confirmation factor, and implements the differential management. According to the relevant person in charge of Henan Development and Reform Commission, the key energy-using units such as chemical industry and building materials that exceed the quota of energy-using rights can be traded by means of pricing transfer, agreement transfer or bidding transfer to purchase the required quota of energy-using rights.

"The promulgation of the measures means that chemical enterprises will have to spend money to purchase the quota of energy use rights in the future. It also means that energy saving and emission reduction of enterprises will realize the realization of"income realisation". It is of great significance for chemical enterprises to strengthen energy saving and emission reduction, but the practical problems existing in the current implementation process can not be ignored." Su Dong, secretary-general of Henan Petrochemical Association, told reporters that the first problem is the serious shortage of coal indicators. He said that many chemical and coking enterprises in Henan formulate coal use indicators based on coal consumption in 2015. Due to the vigorous development of coal chemical industry in recent years, coupled with the changes in the boom cycle of the chemical industry, in recent two years, the start-up rate of enterprises has been higher, and the total coal used has far exceeded the current indicators. Head of the Planning, Development and Marketing Planning Center of Henan Xinlianxin Chemical Industry Group said that the implementation of the Measures will play a positive role in balanced development of the industry, but it is necessary to re-identify the coal use indicators. Coal, as a chemical raw material, should not be included in the total coal consumption as fuel coal. It is hoped that the government can redefine it.

And then there is the issue of energy price. China Pingmei Shenma Group, head of chemical industry department, said that the high price of purchasing new energy indicators will increase production costs and even affect the sustainable development of enterprises; the willingness to sell at too low prices will be reduced. It is suggested that the relevant departments should gradually transfer the transaction price to the market-oriented transaction price system of collective bidding by the traders through pilot projects, and at the same time provide incentives to guide the policy.

"For some good enterprises left behind by structural adjustment, if the energy consumption index is still approved based on the coal consumption in 2015, the enterprise load will be reduced and the normal production will be affected." Some enterprises said. Li Zhengxin, senior economic researcher of Henan Petrochemical Association, believes that the establishment of the new trading system should allow enterprises some room for manoeuvre so as to help control energy consumption costs. It is suggested that the government remove the consumption of raw coal from the total energy consumption. At the same time, in the assessment of coal consumption and the purchase price of energy, we should take full account of the new capacity of enterprises and treat them differently according to local conditions.