Electricity pricing model widens
Print Edition
China released documents yesterday on electricity sector reforms covering everything from pricing to setting up a national electricity futures market.
The new pricing system, which was piloted in Shenzhen and the Inner Mongolia Autonomous Region early this year, will be expanded to Anhui, Hubei, Yunnan and Guizhou provinces as well as the Ningxia Hui Autonomous Region, according to one of the six documents jointly published by the National Energy Administration and the National Development and Reform Commission, China’s top economic planning body.
The new pricing system aims to benefit power users, set up a cost-saving mechanism for power grid enterprises and promote the marketization of electricity.
China will establish electricity trading bodies that are “relatively independent” to promote interprovincial trade.
Authorities will also explore the possibility of a unified national electricity futures and derivatives market, according to the documents.
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