Business Standard

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

Illustration Ajay Mohanty

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has increased tariffs for nearly 30 large factories either because they missed energy efficiency targets or are using outdated equipment.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

Don't miss the most important news and views of the day. Get them on our Telegram channel

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

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to