Should State Grid Corporation of China carry out mixed ownership reform?

For power grid enterprises, which fields to open in time, which enterprises to choose as partners, and what kind of mixed reform strategies and methods to adopt are still key issues to be considered in the next stage.

In the 20 16 reform list listed by the National Development and Reform Commission, it is clear that pilot demonstrations of mixed ownership reform will be carried out in important fields such as electric power, railways, civil aviation and telecommunications to promote the structural optimization, transformation and upgrading of the state-owned economy. Specific to the power sector, the five major power generation groups classified as commercial state-owned enterprises take the diversification of the shareholding structure of their subsidiaries as a breakthrough, actively promote the reform of the shareholding structure and introduce external investors; At the same time, with the promotion of social capital enthusiasm after the release of power sales side, it is believed that * * * should set up a distribution company together.

From the perspective of the reform and liberalization of mixed ownership in power grid enterprises, State Grid Corporation of China announced on 20 14 the liberalization of distributed power grid-connected projects and charging and replacing facilities for electric vehicles. In 20 15, at the national development and reform commission's symposium on the pilot reform of mixed ownership in the power industry, State Grid Corporation of China further put forward the proposal of introducing social investment into pumped storage power stations and energy storage devices. In addition, it will reorganize and integrate the company's listing resources to promote the listing of qualified enterprises.

In contrast, China Southern Power Grid Corporation took the lead in establishing a mixed ownership power supply enterprise in the field of incremental distribution. Five enterprises, including Shenzhen Power Supply Company and China Merchants Property, jointly established Shenzhen Qianhai Shekou Bonded Area Power Supply Company with state-owned shares. Its significance lies in integrating the power grid operation and management experience of power grid companies, the modern corporate governance structure of listed companies, the professional strength in the field of distributed energy application and energy-saving technical services of new energy companies, realizing complementary advantages, promoting enterprise efficiency, and striving to build a governance structure with clear positioning, equal rights and responsibilities, coordinated operation and effective checks and balances.

Focus of mixed reform of power grid enterprises

Under the background of the new round of electricity reform, open cooperation has become the driving force for the innovation and transformation of the power industry, and the reform of mixed ownership is an important opportunity for the accelerated development of the power industry. Power grid enterprises should consider introducing mixed ownership reform in some business areas to obtain external resources, which is conducive to standardizing corporate governance and gradually establishing a market-oriented incentive and restraint mechanism. For power grid enterprises, to promote the reform of mixed ownership needs to pay attention to the following points:

First, ensure that state-owned capital in key areas still dominates. Opening competitive business and introducing non-state-owned capital such as private enterprises and foreign capital does not mean that state-owned capital is in a secondary position, and the pipeline network of natural monopoly links should still be wholly state-owned or absolutely controlled.

The second is to adopt a differentiated mixed ownership strategy for different businesses. On the basis of the separation of competitive business and non-competitive business, it is necessary for power grid enterprises to clarify which areas can be completely liberalized and which areas are restricted or must guarantee absolute holding. According to different fields, we can learn from the experience of reform pilots such as Sinopec and China Building Materials, and adopt the ways of shareholding system reform, adjusting the shareholding structure, establishing new companies in cooperation, merging or participating in private or foreign-funded enterprises, listing and issuing shares, and employee stock ownership.

Typical model of mixed ownership in power grid enterprises

(1) Establish a joint venture company in the field of open competition.

For competitive business, business entities can be liberalized, and power grid enterprises can form joint ventures with mixed ownership. By adopting the mixed ownership form of state-owned capital and other social capital, we will adjust and optimize the capital structure, introduce private capital and revitalize the stock. At the same time, establish and improve the modern enterprise system to realize the complementary advantages, mutual promotion and common development of different types of capital.

For example, the charging and replacing facilities of electric vehicles, as one of the promised areas of power grid enterprises, have large initial investment and long payback period. However, as the "entrance" of vehicle networking, Internet and smart grid, charging facilities show great commercial value in optimizing energy resources, transportation resources and promoting the development of related industries in the future. To promote mixed ownership in this field and set up a joint venture company, power grid enterprises can consider integrating funds, land and business models of all parties into the charging and replacing facilities and service market, establish a long-term profit sharing model with partners, obtain high-quality land and customer resources, pay attention to the integration of upstream and downstream industries and other industries, and improve profitability.

(2) Promote investor diversification and introduce external investors.

Pumped storage power station and peak-shaving and frequency-modulation energy storage project are important facilities in power system, which are not suitable for independent operation. It is suggested that investment should be liberalized around specific projects to realize diversification of investors, while its construction and operation are still dominated by power grid enterprises. For incremental power limiting business, power grid enterprises can set up special power sales companies. After stable operation and establishing a competitive advantage in the electricity sales market, they will continue to develop market-oriented value-added services and financial derivative services. Considering the long-term development of the enterprise, it will absorb high-quality social capital, introduce strategic investors and get the support of investors in company management or technology. * * * Cooperate with the establishment of hybrid power sales companies, and strive to optimize the ownership structure of power sales companies and improve asset quality.

(3) Promote the listing of some business segments.

Realizing the listing of some sectors of enterprise groups through mixed ownership is also an important starting point for the mixed reform of state-owned enterprises. As far as listing is concerned, the reform of mixed ownership should standardize the examination and approval procedures of enterprise restructuring and reorganization, and optimize the procedures of asset evaluation, asset verification, reserve price determination and transaction management. Business sectors, such as competitive business sectors with advanced technology or high asset value, can be listed by divestiture and injection. Examples are as follows: 20 15 announcement of restructuring Huayin Power shows that Datang Group, the major shareholder, intends to inject its two thermal power plants and one hydropower asset into the listed company; Huadian Group is also promoting the reform of state-owned enterprises in an all-round way, and has formulated a reform roadmap focusing on asset operation reform, aiming at realizing the overall listing of the company, promoting listed companies to integrate the assets of the group, and finally allowing all qualified assets to enter the platform of listed companies.

Power grid enterprises need to make full use of listed capital platforms, such as State Grid Gao Ping Electric, Xuji Electric and Guodian Nanrui. While dealing with corporate control and industrial marketization, we should ensure the company's control over core businesses and technologies, co-ordinate research on the transfer, injection, replacement and private placement of high-quality industrial businesses and assets, merge and reorganize business-related enterprises, enhance industrial competitiveness and influence, and strive for the company's listing in different sectors. Promote the transformation of the company's development mode and management mode through system reform, and realize the unified operation of capital.

The next stage of business screening analysis framework

With the deepening of mixed ownership reform, the author believes that the business areas that power grid enterprises can liberalize in the next stage can be judged by constructing a decision-making screening mechanism. A preliminary analysis framework is listed below.

Generally speaking, which business is suitable for mixed ownership needs to be judged from the perspectives of strategic feasibility and operational feasibility in combination with specific business positioning, with emphasis on the influence of factors such as power grid business strategic type, power grid security impact, technology core, business complexity, urgency of mixed reform, profit space, and policy risk prevention.

In the step of judgment, firstly, evaluate the strategic feasibility of developing mixed ownership in specific business. If the feasibility is low, that is, it is not feasible strategically, it is not suitable for development; If it is feasible, further evaluate whether it is feasible in operation. Secondly, evaluate the feasibility of developing mixed ownership for strategically feasible businesses. Establish an evaluation index system of operational feasibility, and only when the operational feasibility reaches a certain level can mixed ownership be implemented. Strategic feasibility is to evaluate the feasibility of developing mixed ownership in this business from the development strategy of power grid enterprises. Based on the three dimensions of business strategy type, power grid security impact degree and technical core degree, the strategic feasibility is evaluated.

The first is the type of business strategy. Related business development strategy is the basic basis for judging mixed ownership, and the importance of strategy determines the necessity of developing mixed ownership. At the same time, the choice of business should conform to the overall strategic positioning and development direction of power grid enterprises and be conducive to the realization of the overall strategic objectives.

The second is the degree of power grid security impact. Security is a key factor to be considered in the process of mixed ownership of related businesses in power grid enterprises. It is closely related to power grid security, with high security requirements and relatively low degree of mixed ownership.

The third is the degree of technical core. Core technology is the prerequisite for all enterprises to survive and the key to build their core competitiveness. The business involving core technology is not suitable for mixed ownership. For example, the power grid operation related to core technologies such as UHV is not suitable for mixed ownership.

Operational feasibility is mainly evaluated from the dimensions of business complexity, urgency of mixed reform, profit space and policy risk.

Business complexity: the complexity of technology, management and process of power grid business determines the contracting ability of external market. The complexity of the business is high, and the professional requirements for partners are correspondingly high.

Second, the urgency of mixed reform: the greater the efforts to promote mixed ownership at the national level, the greater the urgency of mixed reform, that is to say, it is necessary to analyze and choose to open more fields to carry out mixed reform business.

Profit space: future profit space is a necessary condition to attract partners to carry out mixed reform business. From this point of view, the business with large long-term profit space and relatively low current share has greater prospects for the reform and development of mixed ownership.

Policy basis: As a natural monopoly industry, power grid enterprises are the key areas of state supervision, and the mixed ownership of business is bound by relevant policies. On the one hand, the company's business should meet the policy requirements of power market reform and strengthening power supervision. On the other hand, for key businesses, it is necessary to make overall plans to prevent possible risks brought by mixed ownership.

Draw lessons from the above analysis framework, for example, promote the diversification of equity in industrial sectors such as electrical equipment, carry out comprehensive centralized collection of water, electricity, gas and heat, connect energy big data, and build an integrated energy service group; It is promising to deepen the electronic mall, expand the field of smart home, and use the advantages of power big data to choose the right business model to open up the field of personal credit information.