(Indiaenews, Oct 1, 2006) -¨C China is to raise the electricity price for companies with high-energy consumption in the next three years in order to restrict the indiscriminate growth of such industries.

The National Development and Reform Commission (NDRC) announced here that the price hike, to start from Oct 1, would be carried out in three stages, with the next two stages marked for January 1, 2007 and 2008 respectively.

The NDRC predicted that the price hike would raise the cost of concerned companies by more than 5 percent per year and force most of them out of the market in three years.

In order to check the indiscriminate growth of industries with high-energy consumption, the NDRC had adopted different electricity prices in 2004 for industries such as electrolytic aluminum, ferroalloy, calcium carbide, caustic soda, cement and steel.

By May 2005, 30 provinces, autonomous regions and municipalities in China besides Tibet had adopted the policy.

Source:Indiaenews
tag:China energy power