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Guangdong Ups Electricity Prices

Guangdong Province, suffering from a short power supply for the past two years, is planning to raise the electricity price during its peak hour for residents in the following months.

That means that local residents and business people would have to pay more if they use electricity during the peak period, an official from Guangdong Provincial Economic Commission said yesterday.


"But the new dual-price plan will have to be approved by the central government before it is introduced in this southern prosperous province," Mo Jianbing, an official from Guangdong Provincial Economic Commission, said yesterday.


He refused to give more details on the dual electricity prices.


Mo said the new plan aimed to urge local residents to avoid consuming more electricity during the peak period.


But currently only the industrial manufacturers pay more when they use electricity during the peak period because enterprises use much more electricity than residents.


Local residents and the self-employed pay the same electricity price.


The plan to introduce a dual electricity price came after the province experienced its worst year in electricity supply in 2005.


The operation of the Guangdong provincial electricity grid reached more than 44 million kilowatts eight times in the summer. The figure, which saw an increase of 4.5 million kilowatts compared with the data recorded in the previous year, was a record high in electricity supply in the province's history.


The power shortage in Guangdong reaches more than 4.8 million kilowatt this year.


To narrow the electricity gap, Guangdong has to purchase plenty of electricity from the southwestern Chinese regions, the Three Gorges areas and the Hong Kong Special Administrative Region every year.


The price rate between the peak period and its ordinary period is 3.16:1 in Guangzhou.


(China Daily September 23, 2005)

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