China hikes electricity rates to counter shortage

AP News
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Posted: May 30, 2011 8:35 AM
China hikes electricity rates to counter shortage

China has raised electricity rates for some industrial users as parts of the country face severe power shortages.

The brief Xinhua News Agency report Monday said residential rates were unchanged. It gave no details about where the changes would be imposed.

The increase of about 20 yuan (about $3) per 1,000 kilowatt hour presumably is meant to encourage conservation and motivate utilities to produce more electricity though they are payinig more for coal and oil.