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Monday, May 30, 2011

China raises power prices for non-residential users

Power lines on the outskirts of Beijing China's economic growth has triggered a demand for electricity in the country
China has raised electricity prices for industrial, agricultural and commercial users in 15 provinces as the government grapples with a large power shortage.
The new tariff will see users paying an average of 1.67 yuan ($0.25; £0.16) extra per megawatt hour, according to the official Xinhua News Agency.
This is the first time China has raised electricity prices since November 2009.
The new tariffs will take effect from 1 June.
Serious shortfall China has witnessed tremendous growth in the past few years and is now the world's second-largest economy.
However while demand for electricity has increased substantially, supply hasn't increased to match it.
The difference in supply and demand is expected to widen even further this summer, with a shortfall of almost 30 - 40 megawatts expected during peak periods.
Analysts say that price rises are key to solving the issues.
"This is obviously good for (dealing with) the power shortages and it was very much expected," said Lin Boqiang, director of the Centre for Chinese Energy Economics Research.
"The only way the problems can be solved is by adjusting prices," he added.

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