Recently, the Electricity Regulatory Commission issued the "Administrative Measures on the Deregistration of Power Business Licenses." According to the “Measuresâ€, enterprises that cannot continue to maintain statutory licensing conditions and lose their ability to engage in licensing activities in the future will cancel their electricity, power, and power supply power business licenses, and may not engage in related power business. It is understood that at the beginning of 2012, the SERC will include the establishment of a permit-exempting enterprise withdrawing mechanism and improvement of the exit rules and procedures, and it will be included in the 2012 work points. It will again emphasize the need to publish the 2012 Work Plan for Power Market Access Supervision. The relevant rules and procedures for withdrawing certificate-holding enterprises shall be perfected, and market exits shall be imposed on business entities that do not meet the conditions for licensing. To this end, the SERC Qualification Management Center has stepped up its research on issues related to the exit of the electricity market this year, and has systematically summarized the situation in which license holders withdrew from the electricity market and developed the "Measures" in conjunction with investigations.
The "Measures" are formulated in accordance with the "Law of the People's Republic of China on Administrative Licensing Law," "Regulations on Electricity Supervision," and "Administrative Provisions on the Licensing of Electricity Business," and are aimed at the inability of licensed enterprises to continue to maintain statutory licensing conditions and lose the ability to engage in licensing activities. Actively applied for the suspension of business, and the withdrawal of electric power business licenses and the cancellation of licenses, etc., and defined the procedures and specific requirements for enterprises to withdraw from the electricity market and handle the cancellation of licenses. The issuance of the "Measures" has further improved the access and withdrawal system for the power market, so that the market withdrawal behavior of license holders is "regardable."
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