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China’s Guangdong Scraps Fixed Power Prices for Industrial Users

  • Industrial users must buy power at market prices: document
  • Shift seen increasing costs for some large manufacturers
Bloomberg business news
WATCH: China’s province of Guangdong is eliminating government fixed electricity prices for industrial and commercial users. David Stringer reports.(Source: Bloomberg)

China’s southern province of Guangdong, home to Huawei Technologies Co. and vehicle manufacturer Guangzhou Automobile Group Co., is eliminating government-fixed electricity prices for industrial and commercial users, according to a document seen by Bloomberg issued by a local planning agency.

Industrial users requiring high-voltage power supplies must buy all their electricity via public auctions at market prices immediately, according to the notice distributed to local authorities, major power producers and distributors from the Guangdong Provincial Development and Reform Commission on Wednesday. The new rules don’t apply to agriculture and civil users. The commission didn’t respond to a request for comment.