How does the foreign power industry wages come down?


Recently, the news that a “power plant meter reading unit can save 100,000 annual salary by copying four electric meters a day” has once again triggered controversy over monopoly industries, especially high wages and high welfare in the power industry. At the same time as the public opinion was boiling, the voice of the power system was reduced. The relevant person in charge of the National Development and Reform Commission also clarified a few days ago. The increase of 2.5 cents in electricity price from June 30 is not a solution to the problem of income of workers in power companies.

According to the National Development and Reform Commission's "2005 Operational Analysis of Power Industry and 2006 Trend Forecast" report, the total liabilities of the power industry in 2005 were 2,066.3 billion yuan, a year-on-year increase of 11.5%. The loss of the whole industry was 12.7 billion yuan. It seems logical to introduce price increases and pay cuts from industry losses. However, many people have questioned the treatment of pay cuts. They believe that this is only a self-extraction of the monopolistic industry in the face of criticism, and others have asserted that the pay cut will become a "reform show."

Discussing the salary of an industry naturally starts from the operating cost; while the high cost of China's electricity operation is directly related to China's power system, the monopoly position, which has been broken for many years. In order for the wages of the power industry to really fall and balance with other non-monopoly industries, effective power system reform must be carried out. In this regard, foreign experience may be worth learning from.

Russia: The state only controls the transmission network staff wages 1.9 times higher than the minimum standard

The Russian power system reform began in 1992, and the government decided to spend 10 years on non-monopoly reform. The Russian power system was transformed from a state ownership system to a shareholding system overnight, and the Russian Unified Power Company was established. However, due to various problems caused by the disintegration of the former Soviet Union, this reform was questioned by many parties.

As time goes by, the Russian power industry equipment is aging and inefficient. Since the price charged by the traditional system is very low and the power company is in trouble, the government once again decided to open up the electricity market and introduce a competitive mechanism to attract private investment. After many discussions, the government decided to maintain absolute control over the transmission network, stop interfering with the price of electricity, and achieve bidding on the Internet between power generation companies. In October 2002, the Russian parliament passed a package of power reform programs, and in 2005 established a unified power wholesale market based on competition and completed power structure reform.

Since the end of 2001, the price of Russia's natural monopoly industry has risen, the average price increase of electricity has reached about 35%, and the production costs of personnel such as personnel wages have also increased accordingly. In 2005, the average wages of workers in the power industry were similar to those in the industrial, natural gas and water, transportation and post and telecommunications, management and construction industries, which was 1.9 times higher than the minimum cost of living.

US: Only the transmission price government determines that employee income is linked to company performance

The United States has a vast territory and has the world's largest power system. Electricity regulation is usually dominated by the state, and market-oriented reforms are more complicated and the situation is different.

In the late 1970s, the US power industry was still a traditional utility. Electricity prices were approved based on cost plus gross profit. The operation of new power plants was inefficient and the cost remained high. After the 1980s, the rigidity of the electricity pricing mechanism was widely criticized. The federal and state governments began to gradually deregulate, and through effective competition, electricity prices fell, bringing benefits to consumers. Market organizations have also evolved from the vertical integration of distribution and distribution to the separation of plant networks.

At present, the main characteristics of the US power industry are: the US power industry organizational structure and production operations are constantly changing with the development of power marketization; the US power marketization model is the marketization of power generation and sales, and the field of power transmission. Sharing. Most of the price of different parts of US power products is determined through competition, and only the price of transmission is determined by government laws.

The relaxation of government regulation has a great impact on US power companies. In the half year before Enron’s bankruptcy, the loss of the market value of the power company has accumulated to 120 billion U.S. dollars. After Enron’s bankruptcy, the market value of U.S. power companies fell by 69 billion U.S. dollars. The employee's income is directly linked to company performance. There are also some power companies with sound risk management systems that have succeeded in the new market environment.

Japan: 27% of electricity prices fell in 10 years, employee income was equal to average wage

Japan is the only country where nine power systems coexist (excluding Okinawa Prefecture), and only the two 60Hz and 50Hz power grid systems exist simultaneously. The price of electricity is quite high internationally.

Japan has always implemented a vertically integrated system of distribution and distribution of power companies by region, and all power companies are private (private) enterprises. In 1995, Japan began to introduce independent power generation companies. In 2000, it began to open large users in three levels. So far, all large users except the home users are free to choose power suppliers. Through reforms, the price of electricity for users has decreased by 27% in 10 years, and the rate of return of power companies has also increased. The income of workers in the power industry is also gradually equal to the average wage level in Japan from the monopoly to the competition.

At present, Japan is promoting partial liberalization of power retailing, promoting competition and eliminating waste.

On the whole, the historical background of the development of Japan's power industry is similar to that of China. It is worthy of research and study. Combining the experience of Europe and the United States and China's actual situation, China's power industry should accelerate the pace of market-oriented reforms, get rid of the "parasitic" state, and really turn "The tide of the market, eliminating the abnormal phenomenon of excessive wages in the monopoly industry.

The authenticity of this information has not been confirmed by the international electrical network, for your reference only.
From: China Economic Net

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