China to liberalise thermal power pricing to tackle energy crisis

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BEIJING, Oct 12 (Businesshala) – China’s state planner, the National Development and Reform Commission (NDRC), said on Tuesday that it will fully liberalize pricing for coal-generated electricity and make industrial and commercial users open to all markets. Will have to buy from

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The NDRC said, without giving any specific time frame, that 100% of the electricity generated from coal-fired electricity would be priced through market trading, which is now over 70% in the country.

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Industrial and commercial users will “as soon as possible” buy directly from the market or through agents on the power grid, up from the 44% of users who currently buy directly from the market. Other existing buyers pay fixed prices.

The reforms are Beijing’s latest effort to tackle the energy crisis gripping the world’s second-largest economy, which is expected to last through the end of the year.

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Analysts and traders forecast a 12% cut in industrial electricity consumption in the fourth quarter as coal is expected to be in short supply this winter.

Peng Shaozong, an official of the NDRC, said in a press briefing, “(Pricing reforms) have been made to reflect the demand and consumption of electricity and to some extent reduce the difficulties of operating power firms and increase power supply. Designed to encourage.” Tuesday.

China’s State Council said on Friday it would allow coal-fired electricity prices to fluctuate up to 20% above base levels to prevent higher energy consumption, an increase from the previous limit.

Peng said China’s electricity reform will not have a limited impact on the consumer price index (CPI) and other economic indicators.

Reporting by Muyu Ju, Shivani Singh and Aizu Chen; Editing by Muralikumar Anantharaman and Tom Hogg

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