Residents concern over power prices hike

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China is considering reforms on the price of power. A document drafted by the China Development and Reform Commission suggests adopting higher prices for higher levels of power consumption, along the lines of pricing for water. But how are ordinary people responding to the proposed power price adjustment? Let's take a closer look.

The China Reform and Development Commission suggests that higher prices should be charged for higher consumption of power. It plans to launch the new pricing system within five years.

But some city residents have opposed the plan, pointing out that electricity and power are different.

One city resident said "Electricity is different from other things. If you don't use it after it has been generated, you can't store it. So some countries encourage power usage. When they want to encourage domestic consumption, they lower the price."

Some are concerned that a new power pricing system would lead to price hikes.

One city resident said "The price of power is already expensive. It will just become more expensive after an adjustment."

Experts say a flexible power pricing system would curb power usage and reduce energy consumption. They say it's a reasonable reform in the long term, but it is too early to implement it.

Peng Peng, Researcher of Guangzhou Academy of Social Sciences said "Power usage dropped dramatically during the economic slowdown. Now power usage is an important index for recovery. At this stage, there is no need to curb power usage."

Experts also say that if a flexible power pricing system is adopted, it should consider the needs of low-income families.

China has long vowed to reform its prices for oil, gas and power. But the power sector has moved more slowly than oil, which is now priced according to the international crude oil market.