Mar. 18 – China’s National Development and Reform Commission told local governments to stop giving preferential power discounts to large industrial users as it goes against the national plan to foster energy conservation and revamp industries that have high energy consumption.
Local governments, including Inner Mongolia, Yunnan and Ningxia, have implemented various regional tariffs to accommodate industrial users struggling with higher costs brought about by the global economic slowdown.
By pricing tariffs differently per province leads to distortion of the national power-pricing policy.The central government said it would help large industrial consumers cope through a system that will allow them to purchase electricity directly from generators.
The system will decrease production costs for industrial users that have been suffering from a slowdown of export orders and demand for raw materials and should expedite the overhaul of national power pricing.