China's National Development and Reform Commission (NDRC) has issued a new notice entitled "Regulations on further implementation of the differential pricing policy for electricity". The notice, which has also been approved by China's State Council, Ministry of Finance, and the National Electric Power Supervision Committee, urges local governments to be stricter in their application of the differential pricing policy.
According to the notice, the preferential electricity prices, which provide cheaper electric power to ferroalloy factories, will be abolished from October 20, 2007.
Meanwhile, the differential price tariff, which requires high energy consuming steel mills and similar factories to pay higher prices, is to be applied more strictly by local governments.