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Chinese economic recovery faces new hurdle in rising power costs

China's economic miracle rested partly on cheap and abundant coal power. But since last year local officials have been allowed to raise electricity tariffs for industrial users

Power crisis
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Illustration Ajay Mohanty

Bloomberg
Two of China’s biggest provinces are raising power rates for factories amid increased environmental scrutiny and higher fuel costs, adding another obstacle to hitting economic growth targets.

Jiangsu, the country’s second-biggest provincial economy, has increased tariffs for nearly 30 large factories either because they missed energy efficiency targets or are using outdated equipment. Its neighbor to the south, Zhejiang, is seeking feedback on a proposal to boost rates for more than 600 factories to cover higher natural gas costs.

ALSO READ: China's power crisis will go global if renewables don't replace coal

The moves come after global

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First Published: May 24 2022 | 9:08 AM IST

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