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      Economy

      China lowers electricity price for grid, enterprise users

      1
      2015-04-20 08:45Xinhua Editor: Gu Liping

      China's top economic planner will cut the prices of coal-generated power for grid companies and enterprise users, it announced on Sunday.

      Starting Monday, the grid purchase price will be reduced by two cents (about one-third of one U.S. cent) per kilowatt-hour, the National Development and Reform Commission (NDRC) said.

      Grid companies buy electricity from power generators and sell it to end users, profiting from the price gap. Due to the sluggish economy, coal prices are low, creating a good environment for power price cuts.

      The NDRC said the price reduction will enable grid companies not only to cut prices for customers but to subsidize clean energy including solar and wind power.

      Prices for industrial and commercial users, excluding enterprises assessed as operating inefficiently and over capacity, will decline by 1.8 cents per kilowatt-hour on Monday. The NDRC said this would "boost market vitality and help phase out outdated capacity".

      Prices for household users remain unchanged.

      China has five major electricity generators: China Huaneng Group, China Datang Corporation, China Huadian Corporation, China Guodian Corporation and China Power Investment Corporation.

      State Grid and China Southern Power Grid are the country's two energy distributors.

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