NDRC raises power tariffs by RMB 0.03 per kWh
Shanghai. November 30. INTERFAX-CHINA - In an effort to ease nationwide power shortages, the National Development and Reform Commission (NDRC), China's state economic planner, will raise industrial, commercial and agricultural power tariffs RMB 0.03 ($0.004) per kilowatt hour (kWh) effective Dec. 1, the commission announced on their website Nov. 30.
The price hike is aimed at improving economic incentives for the country's thermal power plants. Thermal power plants have operated under deficits throughout the year due to the soaring price of coal, said the commission, noting that residential power prices are not subject to the hike.
According to industry sources, the market has been expecting the NDRC to raise power prices ahead of the peak winter consumption period to spur additional power generation, Interfax reported Nov. 17.
This is the third power price hike in China this year. On April 10, the NDRC boosted power prices RMB 0.01 ($0.001) per kWh, and June 1 the commission again lifted prices by RMB 0.01 ($0.001).
Additionally, the NDRC announced the same day that China is prepared to introduce a preferential power tariff pricing regime aimed at encouraging residential power conservation.
The pricing scheme, which will be determined by provincial governments, will charge residential power consumers higher tariffs if their consumption exceeds a certain level, said the NDRC.
-WV