China has increased retail and wholesale electricity prices and capped the cost of coal used by power stations. The National Development and Reform Commission has raised power tariffs by 0.03 yuan per kilowatt to prevent widespread shortages over winter.

The price hike will take effect tomorrow, and apply to industrial, commercial and agricultural users but won’t affect the residential sector.

Also, starting from January 1st, the highest price for coal sold to power plants should not exceed 5 percent higher than that of the previous year, and the exit price of 55-hundred kilocalorie power coal in main ports should be under 800 yuan per ton.

The NDRC also suggested charging residential electricity according to the volume of consumption - a move that would only affect 20 percent of the nation’s households.

As inflation has eased from recent peaks, the electricity price hike is being seen as a move to help power producers, who have been losing money on thermal generation.

Source:cntv.cn