Beijing Hikes Capitol Electricity Prices By
Nine Percent
The Chinese government has ordered that electricity prices
go up by 9% in the capitol city of Beijing effective Nov.
11.
While the country, especially the Yangtze delta has suffered
serious
electricity shortages for more than two years, the
central government has refrained from raising prices in
Beijing. Prices in the countryside and outlying provinces
are usually raised more quickly, with the possible exceptions
of Shanghai, Guangzhou and Chongqing, which are governed
directly by the central government, and not their respective
provincial governments. Raising electricity prices in
Beijing is a signal that it cannot keep prices artificially
low any longer.
Chinese urban residents usually pay for their electricity
and gas utilities with pre-paid stored value cards, which
means that they are more conscious of their energy costs
than consumers in most other countries.
Energy and commodity prices have risen considerably in
China over the past two years. Even though China is a
major coal producer, and produces coal to satisfy its
domestic needs, coal prices have also registered double-digit
price rises. The Chinese government is now considering
linking electricity prices to fluctuations in coal prices.
The Chinese government is also actively diversifying
its electricity generation sources. While China has
sufficient coal to cover a portion of its domestic needs,
it is considered to a dirty energy source because it pollutes
the air. The coal industry also suffers from a poor safety
image problem because of the number of coal workers who
are killed in mining accidents annually. As a result,
there has been strong emphasis on developing cleaner and
more environmentally friendly energy sources.
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