Home » China’s power shortage triggered a sharp rise in electricity tariffs and prices rose at least 20% during peak periods | Electricity prices | Power curtailment | Coal

China’s power shortage triggered a sharp rise in electricity tariffs and prices rose at least 20% during peak periods | Electricity prices | Power curtailment | Coal

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[Epoch Times July 30, 2021](Reported by Epoch Times reporter Li Jing) The Chinese Communist Party has issued a notice a few days ago to require provinces and cities to increase peak and valley tariffs. Prior to this, the power shortage in many provinces and cities in China has lasted for about two months. Restricting corporate power consumption has not only made it a problem for Chinese companies to complete orders on time, but also affected foreign companies.

On July 29, the Development and Reform Commission of the Communist Party of China issued a notice to the Development and Reform Commissions of all provinces, autonomous regions, and municipalities directly under the Central Government, State Grid Corporation of China, China Southern Power Grid Corporation, and Inner Mongolia Electric Power (Group) Co., Ltd., requesting the establishment of a peak electricity price mechanism.

According to the notice, the peak-to-valley electricity price difference is determined by various regions. Where the maximum system peak-to-valley difference rate is expected to exceed 40% in the previous year or the current year, the peak-to-valley price difference is not less than 4:1 in principle; in other places, it is not less than 3:1 in principle. .

The notice also requires that, in principle, the increase in peak electricity prices on the basis of peak electricity prices should not be less than 20%.

The authorities raised electricity prices, triggering controversy in public opinion.

A netizen said: “I think it’s unreasonable. In the hot weather in summer, especially during the period from 11 am to 3 pm, the temperature is the highest and the heat is unbearable. At this time, ordinary households need to turn on the air conditioner. If the electricity price rises by more than 20% at this time , It’s not a big deal to the rich, but to the people at the bottom, if you have bought an air conditioner, do you think you can turn it on or not?”

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Some netizens said: “The only thing the central government can control is not to increase the prices of wheat and corn grown by the people; but the people still feed the fertilizer plants, pesticide plants, and the people of the whole country; why can the prices of government products increase? Don’t let the price of planted grain rise?”

On the 24th of last month, a piece of information on the official website of the Communist Party of China attracted public attention. The Development and Reform Commission of the Communist Party of China used “netizens” to report problems when it released a step-by-step electricity price system.

On the eve of the CCP’s Development and Reform Commission’s announcement, China’s nine economically developed provinces had rationed electricity for more than a month, and it was unknown when it would end.

The recent lack of electricity, the summer season, and the increase in private electricity demand have exacerbated the power shortage in China. Many provinces and cities restrict the use of electricity by enterprises, including Guangdong, Guangxi, Zhejiang, Shandong, Sichuan and other 9 provinces that are the engine of China’s economy.

Restrictions on power use by enterprises in many provinces and cities not only make it a problem for Chinese companies to complete orders on time, but also affect foreign companies.

According to CNN’s June 30 news, Klaus Zenkel, chairman of the South China region of the European Union Chamber of Commerce in China, said that as many as 80 member companies of the Chamber of Commerce may be affected by the power curtailment measures and must suspend production for several days a week, causing dissatisfaction with foreign companies.

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Starting from the winter of last year, due to coal shortages, many provinces in the mainland have experienced power cuts.

The fundamental reason for the shortage of coal in power plants caused by the coal shortage that has occurred since the end of last year, analysis believes that the Chinese Communist authorities banned the import of Australian coal.

Because Australia has made it clear that it will hold the CCP authorities responsible for covering up the truth about the CCP virus (Wuhan pneumonia), the CCP has launched trade retaliation against Australia and banned the import of Australian coal, timber, wheat, lobster and other commodities. However, the Chinese Communist Party’s move did not make the Australian government yield. On the contrary, it caused trouble for mainland steel, power generation and other manufacturing industries.

Editor in charge: Sun Yun#

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