- Prices may fluctuate by 20%, versus +10% and -15% previously
- High energy consuming industries not limited to 20% increase
BEIJING, Oct 8 (Reuters) – China will allow coal-fired power prices to fluctuate by up to 20% from base levels, an increase on previous limits, to prevent high energy consumption, state broadcaster CCTV reported on Friday, citing a meeting of the State Council, or cabinet.
Thermal coal prices in the world’s second-biggest economy are near record highs and tight supply of the fuel, China’s main source of power generation, has led to electricity rationing across the country, crippling industrial output and threatening economic growth. read more
China had previously allowed coal-fired power prices to rise by 10% and fall by 15% from base levels.
For high energy-consuming industries, prices will be determined by market transactions and will not be limited to a 20% increase, CCTV said in its evening newscast after the State Council meeting chaired by Premier Li Keqiang, which discussed making further arrangements for energy supply this winter.
Coal-power companies will receive support to increase power supply and those in financial difficulty will be allowed to defer tax payments, the CCTV report said, adding that financial institutions should meet “reasonable” requests for loans from power plants.
Reporting by Muyu Xu and Tom Daly; editing by Jason Neely
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