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China to hike power prices for out dated steel equipment- The 18th China(Guangzhou) Int¡¯l Plate metal, Bar, Wire, Metal Processing &Setting Equipment Exhibition
1/5/2017 plate metal expo |
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Local media reported that China has toughened its tiered electricity pricing to deter outdated steel producers and advance capacity cuts. According to the website of the National Development and Reform Commission, The measure, effective since January 1 2017, will raise the extra price paid by outdated steelmakers by 66.7% to CNY 0.5 (about 7 U.S. cents) per kWh.¡±
Outdated steelmakers are those scheduled to be phased out
Producers that have not met capacity-cut goals on time face the same penalty as those to be phased out, while those in the "restricted" category will continue to face an additional 0.1 yuan per kWh of electricity.
Local authorities are allowed to expand the price gap even further, the NDRC said.
Since 2004, the NDRC has implemented a three-tier pricing system for eight major energy-intensive industries, including steel-making, categorizing the players as "encouraged," "restricted" or "outdated." The incentive is considered conducive to the country''s capacity cuts and supply-side reform.
-- The 18th China(Guangzhou) Int¡¯l Plate
metal, Bar, Wire, Metal Processing &Setting Equipment Exhibition
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