Two of China’s largest power distributors will cut electricity rates for most of their business customers by an average of 5%, in Beijing’s latest move to assist manufacturers struggling under restrictions and other limitations aimed at controlling the Covid-19 outbreak, reported Caixin.
The new cuts are effective from Feb. 1 and will run through June 30, according to a notice issue late Saturday by the National Development and Reform Commission (NDRC), China’s state planner. While the policy will apply to most commercial enterprises, regardless of size, it excludes the most power-intensive users.
The NDRC’s latest assistance plan applies to State Grid Corp. of China, the nation’s largest electricity distributor, and China Southern Power Grid, a major provider in the nation’s affluent south. State Grid estimated the 5% reduction would save its customers a total of RMB 36.4 billion ($5.2 billion), while Southern Power said its customers would save RMB 7.4 billion.