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June 16, 2012

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Home » Business » Energy

City picks yearly pricing plan for graduated electricity rates

SHANGHAI has chosen a yearly plan to implement its graduated power tariff mechanism, part of a nationwide program designed to curb excessive energy consumption.

Under the plan, effective July 1, a household pays what it currently pays until consumption hits 3,120 kilowatts hours (260 kwh a month times 12), and then pays higher rates during the rest of the year. That trigger point will be 1,560 kwh for the second-half of this year.

Shanghai has set a "basic needs" figure at 260 kwh a month, the average consumption of 80 percent of the city's households last year. Increased charges will kick in once consumption is beyond the quota.

The National Development and Reform Commission let local authorities set their own plan in the progressive tariff system, but any plan should ensure at least 80 percent of local households are unaffected.

Shanghai's basic needs category is the highest on the Chinese mainland given its higher level of economic development. However, some participants at a public hearing last month asked for an even higher quota because most people in Shanghai, unlike northern cities such as Beijing that have central heating, rely on electric heaters and air conditioners in winter.

Shanghai also will give households with five people or more an extra 100 kwh per month in their "basic needs" quota, according to the plan, though power company officials have said that it's actually the space, rather than the number of people, that plays the decisive role in power use by households.

Such large households account for 17.5 percent of the city's total, according to Lou Zhe, a policewoman who participated in last month's hearing.

Shanghai's residential power price is 0.617 yuan (about 10 US cents) per kwh, and half that figure at night.

In the yearly plan, the city's power price for the portion over 3,120 kwh but below 4,800 kwh will be 0.677 yuan during daytime and 0.337 yuan at night. The part over 4,800 kwh will be 0.977 yuan for days and 0.487 yuan at night. The nighttime for pricing purposes is from 10pm to 6am.

Though what most of the city's residents pay will not be affected, the new system will result in a 4 percent rise on average in Shanghai's residential power prices, local authorities said.




 

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