Interfax China has reported that China's top economic planner, the National Reform and Development Commission, is planning to put an end to preferential power prices that several regions have offered to heavy power consuming industries.
According to the report, between October and December 2008, local governments of the Inner Mongolia and Ningxia Hui autonomous regions as well as Qinghai and Yunnan provinces lowered power prices for certain sectors including those that manufacture aluminum, iron alloy, polysilicon, and calcium carbide.
Mr Li Jianwei head of the Shanxi Electric Power Association said it is reasonable for the NDRC to reverse such policies as they do not conform with China's plan for sustainable development. He said that although the economy has run into to some difficulties, "we cannot risk encouraging the over development of such heavy energy consumption industries."
At the end of December, NDRC officials said that these policies were understandable, but went against the country's industrial policy, which was implemented to curb the growth of such heavy power consuming industries.
Source: Steel Guru
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