China boosts electricity prices for second time in two months

China will increase the price of electricity sold to grid companies by 5% starting today, the second increase in two months, to ease nationwide power shortages, the Wall Street Journal reported. The price change will pay thermal power producers an average US$0.0029 more per kilowatt-hour of electricity, but will not impact end-user prices, said the National Development and Reform Commission. The move is expected to alleviate some pressure on power producers that must pay higher market prices for coal but sell their power under government-set tariffs. Growth in electricity generation this year slowed to 8.1% in July year-on-year, the lowest for a non-holiday month in three years. Most analysts had not expected another price raise until after the conclusion of the Olympics, the newspaper said.