The national development and Reform Commission, the relevant responsible person said today, approved by the State Council, the decision since April 20th, the national coal-fired electricity price per kWh reduced about 2 cents, commercial and industrial electricity prices per kilowatt hour is reduced about 1.8 cents, to reduce the enterprise cost, stabilize market expectations, and promote economic growth.

The responsible person said, around the coal-fired electricity price the price standards according to the coal price linkage mechanism and the local changes in the price of coal is determined; reduce coal-fired electricity price formation of space, in addition to the appropriate guidance of natural gas for power generation and denitration, dust and ultra low emissions electricity and other environmental protection contradiction, all used to reduce electricity prices industry and commerce.

It is understood, the sales price adjustment process, China will promote the commercial and industrial electricity prices overall, the settlement of the remaining Jiangxi, Guizhou and Xinjiang 3 provinces and the price of electricity in the country except Tibet, the full realization of the business with the price of electricity, to further promote the development of service industry. Residents and agricultural production of electricity price in principle remain stable, appropriate to reduce cross subsidies between power users. The phasing out of chemical fertilizer production of electricity tariff concessions, perform the same categories of business electricity prices; preferential price big place, two step, in April 20, 2016 the abolition of all tariff concessions.

Director of the energy economic research center of Xiamen University Lin Boqiang analysis, downregulation of coal-fired electricity price, means that the power enterprises, power grid enterprises should properly none. However, the price cut vacated space will be the price of electricity price subsidies for environmental protection and reduce the industry and commerce, for power companies, profitability is still guaranteed, and industrial and commercial enterprise can also benefit from.

The national development and Reform Commission requirements, in the sales price decline at the same time, we must continue to increase the high energy consumption industry, serious excess capacity in the industry to implement differential power prices, the enforcement of punitive tariffs and price ladder policy, careful screening and timely disclosure of enterprise directory, promoting the upgrade of industrial structure and eliminate backward production capacity. At the same time, continue to focus on the coal industry turnaround, regulate coal construction and production order, power companies, coal enterprises should strictly abide by the annual contract, and jointly create a favorable business environment coal industry.