China will lower prices of coal-fired power and power consumption for industrial and commercial purposes to reduce business costs, the State Council said Wednesday.
Price for coal-fueled electricity will be cut by around two yuan (0.33 U.S. dollars) per 100 kWh and commercial electricity consumption will enjoy a same lower price as industrial with a reduction of about 1.8 yuan per 100 kWh, said a statement released after an executive meeting of the State Council presided over by Premier Li Keqiang.
The adjustment aims to reduce business cost amid falling coal prices and sluggish production activities.
China's benchmark power coal price dropped 10 yuan/tonne in April 1-7 to average at 459 yuan/tonne, according to the latest Bohai-Rim Steam-Coal Price Index published on Wednesday.
Bohai-Rim Steam-Coal Price Index has continued declining for 14 weeks in a row with a total decrease of 66 yuan/tonne.
The government will continue to charge more for large energy consumers and enact harsher electricity price punishments for high energy consuming and polluting productions, the statement said.
The price cut is expected to ease structural problems to encourage more environmentally friendly power generation methods to reduce emission and air pollution.
China cut coal-fired power price both in 2013 and 2014 to encourage power plants to take more de-nitration, de-dusting and other environmentally friendly technologies in electricity generation.
