China raises non-residential power prices

Electricity will cost more for non-residential users starting Friday. The increase has been set at 0.028 yuan for every kilowatt hour. CCTV reporter looks at what the first price-hike in 16 months hopes to achieve.

The National Development and Reform Commission says the price hike aims to reform and improve the sales structure of the domestic power industry. The move is also designed to narrow the price gap between big cities and rural regions, while unifying prices for commercial and industrial use.

For residential customers, retail power prices remain unchanged at least for now. But the Commission says it plans to readjust the household electricity power pricing system to boost energy conservation. In the future, different bands of consumption with heavy users paying higher base rates will encourage consumers to cut down on power use. The Commission is currently carrying out research and gathering information for this proposed pricing reform.

Impact:

Analyst: Power price hike not to trigger inflation

Some analysts believe the price hike has come at the right time, and will only have a limited impact on economic development, and people's daily life. The price increase is not expected to spark inflationary pressures. Full story >>

Residential electricity to be charged on progressive basis

The NDRC says residential electricity prices will not be raised this time. But starting next year, charges will be on a progressive basis. Full story >>

Expert's insight

Expert: Energy prices to see further increase

The hike in non-residential electricity prices will not add pressure to the PPI or the CPI in the near term. But he says in the long run, China's energy prices will see further increases.

Expert backs energy pricing mechanism