China adjusts on-grid electricity prices to reduce emission

15 October 2013 10:45  [Source: ICIS news]

SINGAPORE (ICIS)--China will offer less money to coal-based power companies for electricity and offer more to power plants based on natural gas in its bid to improve the environment, the National Development & Reform Commission (NDRC) said on Tuesday.

Under the scheme, on-grid tariffs for coal-based power plants have been reduced by yuan (CNY) 0.006 to CNY0.025/ kilowatt hour (kWh), effective from 25 September.

On the other hand, coal-based power companies which meet emission requirements are given a raise of CNY0.002-0.01/kWh for on-grid prices, the Commission said.

Meanwhile, on-grid prices for natural gas-based power generators in Shanghai, Jiangsu, Zhejiang, Guangdong, Hainan, Henan, Hubei and Ningxia will be increased, while the increment will be decided by the local governments.

Industry sources said that apart from emission consideration, the decision is also a response to weakened coal prices and increased gas values in the country.

However, retail power prices to consumers will not change.

By: Fanny Zhang
+65 6780 4359

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