Hebei Daily – Hebei Cancels Electricity Price Discounts for Small and Medium-Sized Fertilizer Producers
Release Date:
2016-06-11
Hebei has abolished the electricity price subsidy for small and medium-sized fertilizer producers.
On June 11, Hebei Province decided to streamline the classification of retail electricity tariffs, reduce electricity prices for industrial and commercial users, and abolish preferential pricing for small and medium-sized fertilizer producers. The simplification of tariff classifications primarily involves merging the former “general industrial and commercial and other uses” category with the “large‑scale industrial” category into a single “industrial and commercial and other uses” category. Industrial and commercial customers, including new subscribers, will continue to be subject to either the single‑rate or two‑part tariff structure in accordance with the original classification rules, while all other tariff policies will remain unchanged.
Electricity prices for industrial and commercial users will be reduced, and preferential tariffs for small and medium-sized fertilizer producers will be eliminated. On the Southern and Northern Power Grids, industrial and commercial as well as other electricity rates will be lowered by 1.51 cents and 0.1 cent per kilowatt-hour, respectively. Electricity used by small and medium-sized fertilizer producers previously classified under the general industrial and commercial category will now be billed under a single‑rate tariff; electricity used by such producers previously categorized as large‑industrial will henceforth be charged at the non‑preferential rate within the two‑part tariff structure. Tariffs for calcium carbide, electrolytic caustic soda, chlor-alkali, synthetic ammonia, and electric‑furnace yellow phosphorus production, as well as residential and agricultural electricity, will remain unchanged. The Provincial Price Bureau has instructed local price authorities to strengthen oversight of the implementation of these pricing policies to ensure full compliance. The tariff adjustments will take effect on June 1, 2016, with the special tariff for small and medium-sized fertilizer production becoming effective on April 20, 2016.
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