The Trial Implementation of Differential Pricing Policy in 6 High Energy-intensive Industries (2004-2012)

Last updated: 16 April 2021
China's increase in electricity consumption has grown rapidly from 295 TWh to 3569 TWh in 2009 with an annual average growth rate of 9%. Though the global financial crisis slowed growth, during these years leading up to the recession, China encouraged policies towards decreasing electricity consumption.

National Development and Reform Commission (NDRC), 2004. The Trial Implementation of Differential Pricing Policy in 6 High Energy-intensive Industries (). Later this was expanded to eight energy-intensive industries:
1.electrolytic aluminium2.ferroalloy3.calcium carbide4.caustic soda5.iron-steel6.yellow phosphorous7.zinc

The Chinese government has imposed a differential energy pricing scheme for high energy-consuming industries and products. Along with this energy price differential for industries and products, households are charged for heat supply based on consumption metered at the household level. While the policy is implemented nationally, provinces are allowed to set their own pricing levels.

These eight categories were further classified into: disallowed, restricted, allowed, and encouraged.

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