China starts to raise the electricity prices for industrial and
commercial users by 0.3 cents per kilowatt-hour, beginning May 1,
to cope with coal prices hike, said the State Development and
Reform Commission Saturday.
Electricity prices for agricultural producers and small and
medium chemical fertilizer producers will not be affected, said an
official with Commission (SDRC).
The household electricity prices will not be adjusted this time
either, said the official. According to the current electricity
pricing mechanism, hearings will be held before raising the
electricity charges for residential users.
The coal prices in China have increased continuously since last
June and many electricity generating companies have began to report
losses, said the official. The price hike is expected to help
generators maintain the normal operation.
Power shortages have become a major issue in many parts of China
since 2003. Twenty-four of 31 province-level regions on the Chinese
mainland suffered from power shortages in 2004, compared with 19 in
2003.
Previous reports from the planning agencies said China would
continue to experience a power shortage this year, possibly of 25
million kilowatts.
Differential electricity prices will be in place this year to
guide businesses to use electricity in off-peak hours, said the
official. Beijing will increase peak-hour electricity prices to
four times the cost of off-peak rates this summer.
(Xinhua News Agency May 1, 2005)