China improves coal power pricing mechanism – Xinhua

The photo shows a storage area for steam coal in Huanghua Port in Cangzhou City in Hebei Province in north China, December 22, 2020. (Xinhua / Wang Min)

BEIJING, Oct. 13 (Xinhua) – China’s top economic planner announced on Tuesday an improved pricing mechanism for coal electricity to deepen market-oriented pricing reform in the sector.

The fluctuation range of the market-based electricity transaction prices is generally adjusted to a range of 20 percent fluctuation in both directions. Currently, the upper limit is 10 percent and the lower limit is 15 percent deviation from the reference price, said the State Commission for Development and Reform (NDRC).

The market transaction prices for coal-based electricity for companies with high energy consumption are not restricted by the upper limit of 20 percent fluctuation.

All local governments should give priority to supplying the population and agriculture with cheap electricity, the commission said.

This will help the market play its full role so that electricity prices can better reflect supply and demand, as well as changes in costs, said Peng Shaozong, an official at the NDRC.

The new rules make it clear that the market price of companies with high energy consumption is not limited by the upper limit of 20 percent.

This can better transmit the pressure of power generation costs and curb inadequate power consumption, Peng noted.

The new rules will also encourage high-energy companies to increase their investment in technological change, increase energy efficiency, and encourage change and modernization of the industrial structure, the official said.

The electricity consumption of residents and agriculture will not be affected by the reforms, so they will maintain their electricity pricing, Peng said.

(according to Xinhua News Agency)

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.