Power prices expected to undergo major reforms
- Source: Global Times
- [07:55 November 20 2009]
- Comments
A tricycle passes a power plant of China Datang Corporation in Central China's Anhui Province. The price of electricity for non-residential use will be raised by 2.8 fen ($ 0.4 cent) per kilowatt-hour on average nationwide starting from today. Photo: CFP
By Zhao Qian
The price of electricity for nonresidential users will be increased by 0.028 yuan ($0.4 cent) per kilowatt-hour on average starting today, according to Xinhua News Agency, citing the National Development and Reform Commission (NDRC).
The power price rise would not push up China's consumer price index, a main gauge of inflation, said Cao Changqing, director of the NDRC's department of pricing.
The price of power for residential users will not change.
Although the price increase this time is not related to residential use, residents are still concerned that their personal life will be affected.
"If the price of electricity for a bread factory is increased, it still can affect our daily lives," Yu Menghan, editor of a fashion magazine, said on Thursday. "It will increase our cost of living."
"At present I don't care because only the price of electricity for nonresidential users went up. But who knows about what will happen in the future," said Li Ming, an editor from a publication company.
"I think the grid operators are already very rich," an Internet user commented on a blog on the Chinese Central Television website. "If the government raises the electricity price in order to make up for the losses of the grid operators, why don't they think about the real cause of their lack of profits?"
The State Grid Corporation fell into red in the first nine months, suffering a profit loss of 16.05 billion yuan ($2.35 billion), and 25 of the grid operator's 30 local companies saw red margins, a company employee was quoted by Shanghai Securities News as saying.
