Policy analysis and suggestions for promoting direct supply of natural gas to large users

In recent years, the state has issued a series of laws and regulations to protect the legitimate rights and interests of franchise operators, local governments change the agreement or break the agreement, should give the franchise operators corresponding compensation. Where an enterprise initiates an administrative lawsuit, the people's court shall accept and support it according to law. For example, Article 7 of the "Opinions on Improving the Property Rights Protection System to Protect Property Rights according to Law" (issued by the CPC Central Committee and The State Council on November 4, 2016), Article 31 of the "Regulations on Optimizing the Business Environment" (issued by The State Council on October 22, 2019), and the "Measures for the Management of Infrastructure and Public Utilities Franchise" (six ministries, including the National Development and Reform Commission, June 1, 2015) Article 36, Article 21 of the Provisions on Several Issues Concerning the Trial of Administrative Agreement Cases (Interpretation [2019] No. 17, issued by the Supreme People's Court on November 12, 2019), the main contents are as follows: (1) Vigorously promote the construction of law-based government and government integrity, local governments at all levels and relevant departments should strictly honor the policy commitments made to the public and administrative counterparts in accordance with the law, earnestly fulfill the various types of contracts signed with investment entities in the activities of attracting investment, government-social capital cooperation and other activities, and shall not break the contract under the reasons of government change, leadership change, etc. Those who infringe upon their lawful rights and interests due to breach of the contract shall bear legal and economic responsibilities; (2) If it is necessary to change policy commitments and contract agreements due to national interests and social and public interests, it shall be carried out in accordance with legal authority and procedures, and compensate market entities for their losses accordingly according to law; (3) Where citizens, legal persons or other organizations bring administrative lawsuits concerning the "government franchise agreement", the people's court shall accept them according to law.

Iv. Relevant Suggestions

4.1 According to the special planning requirements of urban gas, unified planning and construction of the city's "one network" to avoid repeated construction and investment waste

It should adhere to the principle of adapting to local conditions, economic rationality and resource conservation, and promote the direct supply of large users according to the old situation and the old method and the new situation and the new method under the premise of following the special planning of urban gas. For example, according to the local gas supply structure, energy structure, economic level, pipe network coverage, new district development and other aspects, priority can be given to the use of existing pipelines, land resource conservation, reasonable selection of regional promotion, to avoid repeated investment in construction, and to avoid increasing resource investment such as operation, management and maintenance.

4.2 Adhere to the pipeline gas franchise system, give full play to the scale advantage to give large users special gas price policy to support economic development

For the urban public utility industry, the franchise system is the least government investment, the most reasonable and effective, the best way to use social capital to solve the urban infrastructure services, should be unswervingly adhered to. Urban gas business enterprises should embrace industry reform, give full play to professional and efficient service advantages, strengthen internal management, reduce gas source and unit gas supply costs, expand gas supply scale, improve the load rate of pipe network, introduce differentiated special gas price policies to reduce the cost of large users of gas, and support the development of the real economy.

4.3 Focus on accelerating the construction of gas facilities, improve the city's gas supply security capacity, and strengthen the confidence of large users in continuous gas use

The government should strengthen the supervision of upstream exploration and development, gas planning, infrastructure construction and urban gas concession operators, strictly supervise the price of gas transmission and distribution and the implementation of gas planning, focus on the construction of natural gas transmission and distribution and storage facilities, improve the ability to ensure supply, create conditions for stable and safe gas supply for large users, and strengthen the confidence of large users in long-term use of natural gas.