China’s power crisis: Zhejiang the latest province to float electricity prices after Beijing eases restrictions

China’s top economic planning agency said last week it was liberalising pricing in the state-controlled power market to help resolve an electricity crisis

Since then, Zhejiang and Guangdong have been the only local governments to alter prices, but other provinces are planning similar hikes

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China’s top economic planning agency, the National Development and Reform Commission (NDRC), said it would loosen pricing in the state-controlled power market last week. Photo: AFP

Published: 8:15am, 21 Oct 2021

Zhejiang province is the latest regional government to raise electricity prices and change peak-demand hours following Beijing’s announcement it would liberalise electricity pricing in response to China’s power crisis.

The move follows in the footsteps of the southern manufacturing hub of Guangdong province, which hiked prices last month by as much as 25 per cent during peak-demand for industrial users.

China’s top economic planning agency, the National Development and Reform Commission (NDRC), said it would loosen the state-controlled power market last week, allowing industrial and commercial users to buy electricity at market prices.

Power prices will be allowed to fluctuate within 20 per cent of the base price, which is set by the government, up from the previous limits of a 10 per cent increase and 15 decrease during peak and off-peak demand hours, respectively.

On Tuesday, The NDRC said it would start intervening in the coal market to cap prices for thermal coal and ensure sufficient supply for power generation.