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New power tariff mechanism to affect about 20% of households
By Richard Fu |
June 14, 2012, Thursday
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Online Edition
Online Edition
China will implement a graduated power tariff mechanism for residents nationwide starting next month as part of government efforts to back energy conservation.
The system, which charges higher rates for heavier users, will leave at least 80 percent of households unaffected.
All provinces and municipalities other than Tibet and Xinjiang have held public hearings on proposals and will be announcing a final plan soon, the National Development and Reform Commission said today.
Shanghai is expected to announce its plan tomorrow. Most participants at a local public hearing last month preferred a plan that uses a yearly calculation period.
The city has set a "basic needs" category of 260 kwh a month, the average consumption of 80 percent of the city's 7.72 million households last year. Increased charges will kick in once consumption surpasses the "basic needs."
City authorities have proposed several plans to implement the system. In the one-year plan, a household pays what it currently pays for power until consumption hits 3,120 kwh (260 kwh a month times 12), and then pays higher rates for the rest of the year. This plan is considered easy to implement but it may also cause problems.
For example, residents may reduce power use at the beginning of the year in order to use more during summer time, which may result in a very heavy power load.
The national commission said today the basic needs category in many provinces has been extended to leave more households unaffected. In some provinces, 90 percent of residents will remain unaffected by the upcoming mechanism.
The system, which charges higher rates for heavier users, will leave at least 80 percent of households unaffected.
All provinces and municipalities other than Tibet and Xinjiang have held public hearings on proposals and will be announcing a final plan soon, the National Development and Reform Commission said today.
Shanghai is expected to announce its plan tomorrow. Most participants at a local public hearing last month preferred a plan that uses a yearly calculation period.
The city has set a "basic needs" category of 260 kwh a month, the average consumption of 80 percent of the city's 7.72 million households last year. Increased charges will kick in once consumption surpasses the "basic needs."
City authorities have proposed several plans to implement the system. In the one-year plan, a household pays what it currently pays for power until consumption hits 3,120 kwh (260 kwh a month times 12), and then pays higher rates for the rest of the year. This plan is considered easy to implement but it may also cause problems.
For example, residents may reduce power use at the beginning of the year in order to use more during summer time, which may result in a very heavy power load.
The national commission said today the basic needs category in many provinces has been extended to leave more households unaffected. In some provinces, 90 percent of residents will remain unaffected by the upcoming mechanism.
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