Tariff reform brings much-needed transparency to electricity sector

The National Development and Reform Commission last week announced detailed plans for its first pilot plan for electricity transmission and distribution tariff reforms in Shenzhen, a move seen as a breakthrough for the world's largest electricity consume.

The top price regulator also announced a separate pilot plan in the Inner Mongolia autonomous region.

The reform will change the financial model of power grids. At present, their profits come from the difference between on-grid and retail tariffs.