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China to adjust up on-grid electricity prices

Wednesday, 2 July 2008


BEIJING, July 1 (Xinhua): China's national economy planner National Development and Reform Commission (NDRC) will issue detailed rules and regulations for localities to heighten on-grid electricity prices.

It's learnt that assessment work for the national on-grid price hikes was completed on June 27.

On average, China's on-grid electricity prices will be adjusted up 0. 017 yuan/kwh with the growth in Beijing and Shanghai surpassing 0.02 yuan/kwh. The sales prices of electricity was hiked by 0.025 yuan/kwh since July 1 for industrial users across China except the Tibet Autonomous Region

Currently, NDRC just decided to lift sales prices of electricity.

It has not yet decided where and how much on-grid power prices would be adjusted upward.

Chen Yicong, analyst with Southwest Securities, forecasted that NDRC probably would only adjust up on-grid power prices for power plants.

The rise in electricity sales price will stimulate power enterprises to increase electricity supply.