November 22, 2008

China may increase power prices

It is reported that China, the world's second biggest energy consumer, may raise retail electricity prices to cover higher costs for generators and distributors.

Mr Zhang Zengchan, secretary general of China Ferroalloys Industry Association recently in Xiamen, citing discussions with government officials said prices may increase by CNY 0.025 per kilowatt-hour. He didn't say when prices will be raised.

He said that “The tariff hike will lead to higher costs for ferroalloy producers though the impact of the increase won't be as big as prices of imported mineral ores."

China raised prices of electricity sold from utilities to distributors by 4.7 % in July and 6 % in August. The increases were aimed at helping power generators cope with rising coal costs, which reached a record CNY 1,080 a tonne on July 23.