Energy

China considers to charge residential electricity on tiered basis

(Xinhua)
Updated: 2010-10-09 15:53

China's top economic planner said Saturday that it had started to seek the public views on its intentions to change the way residential electricity use is charged.

A tiered electricity pricing mechanism for residents would help save energy and protect the environment without causing a marked increase in the cost of power for the majority, an official of the National Development and Reform Commission (NDRC) told Xinhua.

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In the proposed progressive pricing mechanism, electricity prices of residential users would be charged according to three tiers set by the NDRC in accordance with power usage, said the unnamed official.

"The prices would be at a level reflective of the costs arising from scarcity of resources and environmental damage," the official said.

The proposed pricing reform with two programs would leave 70 percent or 80 percent of Chinese households, who consume electricity of no more than 110 kWh or 140 kWh per month, almost unaffected, as power prices for them would remain the same or be adjusted higher by 0.01 yuan (about $0.0015) per kWh.

Another 20 or 15 percent of the households who consume electricity of no more than 210 kWh or no more than 270 kWh each month would have to pay prices higher by no less than 0.05 yuan per kWh for the additional power beyond the line of 110 kWh or 140 kWh.

For the remaining 10 or five percent who consume more than 210 kWh or 270 kWh per month, the power use beyond the level would be charged at a price of at least 0.2 yuan per kWh higher than the current uniform price.

The options of maximum 110 kWh or 140 kWh per month as the base tier are to be decided after public debates, as well as the the choices of 210 kWh or 270 kWh per month for the division between the second and third tier.