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China Says Special Power Rates to Heavy Users Cancelled
Aug 6, 2010 14:11CST

BEIJING, Aug. 6 -- China cancelled all preferential power tariffs for energy-intensive companies directed by local governments in 22 provinces as of July 14, the National Development and Reform Commission said on Friday.

The cancellations, involving 15 billion yuan ($2.22 billion) in power charges, would strength China's efforts to save energy, reduce emissions and shut down out-dated capacity, the commission said in a release on its website (www.ndrc.gov.cn).

Beijing in May ordered local governments and power suppliers to stop offering favourable power prices to energy-intensive companies including aluminium, ferroalloy and calcium carbide makers. It also raised power surcharges for energy-guzzling and polluting industries, as the government was alarmed by the rise in energy intensity in the first quarter of this year.

China pledged to cut energy intensity -- the amount of fuel needed to generate each unit of gross domestic product -- by 20 percent within five years, from the 2005 level, but the indicator rose 3.2 percent on year in the first quarter after consecutive falls in the past four years, endangering Beijing's efforts to reach the goal.

Premier Wen Jiabao said in May that "the reverse greatly increased the difficulty of our work for the last three quarters of this year" and the government rushed out a series of measures including power-pricing policies and administrative orders to improve energy efficiency.



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