China's National Development and Reform Commission (NDRC) has announced that as of June 1 electricity prices for certain industrial users will be raised by an average margin of RMB 20 (approx. $3) per 1,000 kilowatt hours in 15 provinces and cities in China.
According to the official statistics, in the first four months of this year total electricity consumption in China registered a year-on-year increase of 12 percent, with the largest increases recorded in the metal, oil and cement industries. Insiders state that these high energy-consuming industries have been expanding rapidly in recent years, resulting in a significant increase in coal consumption in China.
It is thought that the upward adjustment of electricity prices will slow the expansion of domestic industries which have high levels of energy consumption.