China Raises Retail Power Prices

[xchrom]

http://www.bloomberg.com/news/2011-05-30/china-raises-industrial-power-prices-in-15-provinces-to-help-ease-shortage.html

China will raise retail electricity prices starting next month, the first increase in more than a year, to curb demand and boost power generation as the nation battles a shortage that may be the worst in history.

Power prices for industrial users in 15 provinces will increase starting tomorrow and those paid by residential users will remain unchanged, said an official with the National Development and Reform Commission, the top economic planner, who declined to be identified because of internal rules. Li Puming, a spokesman at the NDRC, declined to comment when contacted by Bloomberg News.

China is battling an electricity supply shortfall that may reach as much as 40 gigawatts this summer, surpassing the shortage in 2004, the country’s worst, according to State Grid Corp. of China. The price increase, the first since November 2009, may spur power plants to increase utilization rates after rising coal costs and government caps on electricity tariffs forced some utilities to curtail operations or even shut.

[MineralMan]

1. Just the opposite of what they're proposing for Wisconsin.

Wisconsin plans to cut power prices to industrial users and raise them for residential users. Interesting.

[FreakinDJ]

2. China uses scientist in it's policy decisions

we use lobbyist

[MineralMan]

3. Yes, well, I just thought the contrast was interesting.

[FreakinDJ]

4. Oh it most certainly is interesting

Not only will the increased electricity cost be shifted to commercial electrical users - but ultimately US - the end consumer

Just like China's VAT tax which funds their military and infustructure - paid for by you and me - the end consumer