Caixin
Jun 28, 2021 07:45 PM
BUSINESS & TECH

China Signals Electricity Price Hike for Households

What’s new: China’s top economic planning agency has acknowledged that electricity prices are too low for households and too high for businesses, signaling that residential power prices might be increased sometime in the future.

The National Development and Reform Commission’s (NDRC) statement (link in Chinese), published Thursday in response to an online comment, did not say when or by how much prices might rise.

The context: In China, residential customers have long paid below-cost prices for electricity, while industrial and business users have not, meaning that the latter have been subsidizing the former, the commission said.

In the statement, the NDRC said that the system should be reformed so that household electricity prices better reflect the actual cost of producing power and to reduce the subsidy that industrial and business users are paying.

Over the past few months, several regions in South China have suffered electricity shortages due to rising demand and a disruption in the coal supply, resulting in temporary power cuts for some enterprises, Caixin reported (link in Chinese).

Related: South China Energy Market in Chaos Over Trial Policy Issues, Supply Squeeze

Quick Takes are condensed versions of China-related stories for fast news you can use.

Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)

Download our app to receive breaking news alerts and read the news on the go.

Get our weekly free Must-Read newsletter.

You've accessed an article available only to subscribers
VIEW OPTIONS
Share this article
Open WeChat and scan the QR code