China said it will cut prices for electricity generated by coal-fired plants as part of efforts to lower companies’ operating costs and aid a struggling economy.
The wholesale charges will fall by an average of 0.02 yuan per kilowatt-hour, the State Council said in a statement, without saying when the change would take effect. Retail prices for commercial and industrial users will decline by 0.018 yuan per kilowatt-hour, it said.
The move contrasts with efforts by the government to rein in coal consumption that has contributed to pollution choking cities such as Beijing. It also comes amid a slump in coal prices and as the government tries to reignite an economy forecast to grow this year at the slowest pace since 1990.
The aim is to lower operating costs for businesses and promote economic growth, the State Council said. The cabinet, headed by Premier Li Keqiang, also decided to abolish various administrative charges on businesses, and to reduce resources taxes on iron ore starting next month.
— With assistance by Xin Zhou