According to a notice released on October 12 by China’s National Development & Reform Commission (NDRC), China will allow its floating electricity prices to increase further as of October 15, aiming to stabilize supply amid a shortage in the country.
Electricity supplied to the national grid is priced based on a formula that comprises a base price and a floating price. Currently, the upper limit of the floating price is no more than 10 percent, while the lower limit is no more than 15 percent, both of which will be adjusted to no more than 20 percent.
According to the NDRC, over 70 percent of coal power has formed the grid price. Recently, the big rises in energy prices and the tight supply of domestic power and coal resulted in power cuts in some regions, which exerted a negative impact on normal economic activities and the lives of citizens. The reform of the floating electricity prices aims to promote the smooth operation of China’s power generation industry.