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China Is Not Yet Fully Reflected In Energy Prices Energy Scarcity
Jan 14, 2017

Hua Jianmin, Vice Chairman of 20th on behalf of law enforcement inspection team of the NPC plenary session of 18th meeting of the NPC on the inspection report on the implementation of the energy conservation law, said energy-saving role of the market mechanism to play enough.

"Coal, electricity, natural gas and other energy prices has not been straightened out, is not yet fully reflected in energy prices energy scarcity, supply and demand and environmental costs, prices on the energy-saving policy is weak. "Hua Jianmin said.

To solve this problem, the report recommends that, in accordance with the requirements of energy-saving law, advance the reform of resource products prices, the price formation mechanism, the implementation of pricing policies conducive to energy saving, leading energy-using units and individuals. Using policies such as taxation, price, support to promote power demand side management, energy management, energy saving voluntary agreements and other new energy conservation mechanism. Progressive implementation of peak and Valley time price, seasonal price and interruptible loads tariff system, encouraging users to adjust the load.

Report recommends that for steel, non-ferrous metals, building materials, chemical companies and other major energy-consuming industries, phase-out, restriction, allow and encourage strict implementation of differential pricing policy. To implement taxation policies in favour of conserving energy and resources, and improve the system of paid use of mineral resources of energy, and promote energy saving and raising the level of exploitation of the resources.

Depending on the situation, there are energy efficiency supervision system in our country is not perfect, the energy statistics system is not perfect, and so on. Institutional mechanism is not perfect, it is difficult to meet the needs of energy-saving work.

In this regard, the report argues, to use legal means and economic instruments to promote energy efficiency, effective corrective shock limits of normal production and residential electricity consumption practices, establishing long-term mechanism to promote energy saving and emission reduction.

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