NDRC to raise power price, but cap coal

BEIJING, CHINA - China will raise the average sales price of electricity starting from July 1, the National Development and Reform Commission (NDRC) announced on June 19.

According to the NDRC, the average sales price of electricity at the provincial grid level will rise $0.0036 per kilowatt-hour or 4.7% on average, except in the Tibet Autonomous Region.

In order to reduce the impact of rising costs, the price for residences, and agricultural- and chemical-fertilizer-production bases will not be adjusted for now. The price of electricity will not be adjusted in areas that suffered heavy losses from the major quake in Sichuan, Shaanxi and Gansu.

The NDRC also made adjustments to the structure of electricity price, including the implementation of a regulated price in urban and rural areas, between industrial and commercial users, as well as by voltage level.

In order to avoid alternating price hikes, and to promote stable development in the coal and power sectors, the NDRC decided to implement a temporary price control on power coal from now until December 31.

During this period, the pithead price of power coal for power generators, regardless of whether it is included in the scope of supply of key power coal contracts, will not exceed the maximum limit based on the actual settlement price determined June 19.

The NDRC has requested that the provincial price authorities should carry out measures, such as fixed prices, to control expenses in circulation intermediaries in order to stabilize the market price of coal power, not included in the supply scope of key power-coal contracts.