China’s State Development and Reform Commission (SDRC), has reportedly raised the nationwide average electricity price by 2.52 fen/kWh (€¢2.5/kWh) for coal-fired plants
The scheme, which launched at the beginning of May, has been designed to ease fuel price pressure on electricity prices and the SDRC also banned coal suppliers from raising prices.
The price pegging scheme is not aimed at covering the full impact of coal price hikes with plants required to accept 30% of the cost. Nonetheless, Chinese coal prices have surged over the last four or five years while significant changes to the electricity prices have not materialised.