The Chinese government has decided to phase out the policy of
charging relatively lower prices for electricity consumed by
enterprises producing electrolytic aluminium, ferrous alloy and
chlor-alkali.
The National Development and Reform Commission, the Ministry of
Finance and the State Electricity Regulatory Commission jointly
issued a notice announcing the policy change as part of the
country's efforts in energy conservation and pollution
reduction.
The government notice also stated that the extra power fees
levied on high-polluting and energy consuming enterprises and
collected by power grid companies shall from now on be handed in to
local provincial level government treasuries. The fees will be
incorporated into the local governments' financial budget to be
used in optimizing the local economic development structure.
The central government asked local governments to divide
enterprises into three categories, namely those to be encouraged,
those to be limited and those to be shut down, based on the level
of their pollution discharges and energy usage.
The local governments should compile lists of the differentiated
firms and report them to the National Development and Reform
Commission and the State Electricity Regulatory Commission. The
lists should also be made public via local media.
The notice adds the central government will conduct a nationwide
inspection on the execution of power pricing policies by local
governments and power grids.
(CRI October 12, 2007)
