Shandong province has introduced regulations aimed at moving power demand from industrial users to off-peak hours, the South China Morning Post reported. The province, which is faced with a 10% power shortfall this summer, raised the tariff premium for peak-period power, and increased the discount for off-peak power, to 60%, from 50%. The changes apply to retail tariffs only, and will not improve the profitability of power producers, which sell power to grid companies according to separate tariff agreements. Agricultural and residential users will not be affected by the new regulations, which are aimed at industrial users. Industrial users are the heaviest users of power in China, and pay the highest tariffs.
For an in-depth look at China’s power system, read CER’s June cover story.