China’s National Development and Reform Commission (NDRC) announced on Tuesday that it will allow coal-fired power plants to charge certain customers market-driven prices for electricity, as a deepening energy crisis convinced authorities to push through their boldest reform of the power sector in decades, reports Reuters.
Responding to shortfalls in power generation brought on by shortages and record high prices for coal, the government has taken a range of steps to boost coal production and manage electricity demand at industrial plants. To help power companies pass on the high costs of coal, the NDRC said that all electricity generated by coal-fired plants would be priced via market trading “in an orderly manner” from October 15.
It also instructed commercial and industrial users to buy direct from the market or via agents over the grid “as soon as possible.” A worsening power crunch has forced production curbs across industries such as cement, steel and aluminum, dampening the outlook for China’s economy.
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