China to hike power prices from 1 Dec

30 November 2011 16:43  [Source: ICIS news]

GUANGZHOU (ICIS)--China will raise the price of electricity and introduce a stepped tariff on residential electricity from 1 December to cushion power generators against rising costs and encourage energy conservation, the National Development and Reform Commission (NDRC) said on Wednesday.

According to an announcement on the NDRC website, the on-grid tariff of coal-fired power plants will go up by approximately CNY0.026/kWh ($0.004/kWh) across the nation.

On average, electricity retail prices will rise by CNY0.03/kWh.

Under the stepped tariff scheme, three different rates will apply for different sectors of electricity consumption.

The first tariff will cover 80% of electricity consumers who will see no rise at all.

The next 15% will see some rise and the top 5%  will be charged the highest price, as their power consumption accounts for 24% of total consumption.

Local governments will publish specific schemes and implement them after public hearings, the statement said.

($1 = CNY6.38)

By: Fanny Zhang
+65 6780 4359

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