China starts new electricity distribution pricing system

China's top economic planner unveiled the country's new electricity distribution pricing system on Thursday as they look to reform the sector.

The southern city of Shenzhen was the first to launch the new pricing system, which began this year, said the National Development and Reform Commission (NDRC).

For every 1,000 kwh of electricity, the new electricity distribution price stands at 143.5 yuan (23.5 U.S. dollars) in 2015, lower than the 155.8 yuan in 2014. For 2016 and 2017, the new prices will be 143.3 and 142.8 yuan, respectively, according to the new pricing system.

The new pricing system aims to benefit power users, set up the cost-saving mechanism for power grid enterprises and promote the marketization of electricity, said the NDRC.

The NDRC has also approved the new distribution pricing system to be piloted in Inner Mongolia before expanding it to more areas in the country.