Zhejiang heavy powers users to pay increased prices

• 13 years ago (2011-05-19)
• David Flin

Asia 912 North America 1035

---

Zhejiang province in eastern China will impose punitive power prices on big power consumers from June 1 if their energy use exceeds stipulated standards, in an effort to curb demand amid rising capacity shortfalls.

The Zhejiang government has announced that it will monitor over 2400 major energy users, and levy a surcharge of 0.10 yuan per kWh if their energy intensity surpasses industry standards. For power users whose energy intensity exceeds energy standards by 100 percent, the surcharge will be increased to 0.3 yuan/kWh.

The government has set energy intensity standards in 44 industries, including power generation, cement production, and printing and dyeing.

The move comes after Zhejiang launched “differentiated power prices” for eight energy-intensive industries, which will have to pay higher power prices than other sectors.

Zhejiang is expected to face power shortfalls of up to 5 GW in the summer, or 10 percent of its estimated maximum power load.