The One-sided Fluctuation Range of Market Prices of Electricity not to Exceed 20%

SHANGHAI, Oct 9 (SMM) - Premier Li Keqiang presided over an executive meeting of the State Council to make further arrangements for the supply of electricity and coal this winter and next spring to ensure the basic livelihood of the people as well as the smooth economic growth.

The meeting stated that it is necessary to reform and improve the market-oriented mechanism of coal and electricity prices. The entry of all coal-fired electricity generation into the power market shall be promoted. Under the premise of maintaining stable electricity prices for residents, agriculture, and public welfare undertakings, the fluctuation range of market prices of electricity will be adjusted from no more than 10% and 15%, respectively, to no more than 20%, in principle. For energy-consuming industries, the prices can be formed according to market transactions and are not subject to the 20% upward limit. The small and micro enterprises and individual industrial and commercial households are encouraged to follow the phased preferential policies. It is necessary to accelerate the construction of large-scale wind power and photovoltaic bases in the desert and Gobi desert areas, with the support of emergency backup and peak shaving control. The construction of coal, natural gas, crude oil reserves as well as energy storage capacity shall be speeded up. The local authorities shall improve the dual control of energy consumption. And it is recommended to exclude the newly-added renewable energy consumption from the total energy consumption within a certain period of time for the purpose of further development.