China Electricity Prices for Industrial Consumers

This is a rundown of how the power rates are fixed in the country.

China's electricity prices for industrial consumers depend upon the category of industry, type of electricity usage, and region where it is located. The cost of electricity consumption is an important factor of production for businesses in the industrial sector, especially in high energy-consuming industries, such as iron, steel, non-ferrous metals, building materials, and chemical industries.

Manufacturing power costs in China

More than 60 percent of China's manufacturing is concentrated in its eastern coastal provinces, such as Guangdong, Zheijiang, and Jiangsu. Recent government initiatives are, however, pushing several industries inwards, to central and western provinces and out of China's major cities. Densely populated central and western provinces like Sichuan, Henan, Shaanxi, and Guizhou have shown a higher growth rate of manufacturing value-added output lately.

Price Fixing

In terms of price fixing, China's electricity rates are highly regulated by the National Development and Reform Commission (NDRC), but actual prices in the provinces are determined by distribution network operators. This is why power rates vary across different regions in the country.

Before deciding where to invest, it is important for investors to study the prevalence of other plants in the region and their energy costs. Investors can base their estimates on the size of their setup and local industrial operations to roughly calculate their electricity consumption costs.

Source: china-briefing.com