Development and Reform Commission: Upgrading Prices of Non-resident Electricity in 15 Provinces and Cities

The National Development and Reform Commission announced on May 30 that since June 1st, the prices of electricity for industry, commerce, and agriculture in 15 provinces and cities have been raised by 1.67 cents per kilowatt-hour, but the price of electricity for residents has not changed.

The provinces and cities that have raised the sales price this time include Shanxi, Qinghai, Gansu, Jiangxi, Hainan, Shaanxi, Shandong, Hunan, Chongqing, Anhui, Henan, Hubei, Sichuan, Hebei, and Guizhou. Among them, the Shanxi Province's sales price rose the most, rose 2.4 points per kilowatt-hour; Sichuan Province, the smallest amount of rise, rose 0.4 points per kilowatt-hour.

The Development and Reform Commission has increased the on-grid tariffs of 12 provinces on April 10, and the on-grid tariffs in Anhui, Hunan, and Jiangxi have been raised since June 1. The on-grid tariffs in these provinces rose by an average of 2 points per kilowatt-hour. Among them, Shanxi raised 3.09 points, the lowest price adjustment is in Guizhou, and the on-grid electricity price per kilowatt hour was raised by 1.24 points. The relevant person in charge of the Development and Reform Commission's Price Division requested that all regions should clear up the preferential tariffs for high-energy-consuming industries and strictly monitor the prices of coal companies.

The person in charge emphasized that since this tariff adjustment does not involve resident users, it will not have a direct impact on CPI and the indirect impact will be quite limited.

The person in charge said that the price adjustment only takes into account the cost pressure brought by rising coal prices to power companies, and does not consider the losses caused by the blind expansion of power companies and the high energy consumption of power units.

He said that the current "electricity shortage" cannot be attributed to the fact that the electricity price is not in place, and specific analysis should be made in specific provinces. From January to April, the country’s electricity demand increased by 12.4% year-on-year, and the rapid growth in the demand side was one of the important reasons for the “electricity shortage”.

The person in charge analyzed that if the coal price rises by more than 40 yuan per ton, it will offset the increase in on-grid tariffs this time. In order to prevent the coal price from rising following the electricity price, relevant departments will strengthen the supervision of coal prices and keep the price of coal stable. Prior to this, the NDRC has issued a notice requesting that the supply price of contract coal be maintained at the level of 2010, and it must not disguise its price in disguise. At present, the Development and Reform Commission is organizing inspection teams to carry out inspections of coal contracts, and it has found that some companies have increased their prices. The person in charge said that if the reform is not in place, the coal company will be punished.