Energy crisis: China goes for 'boldest' power pricing reform in decades

Pushing all industrial and commercial users to the power exchanges and allowing prices to be set by the market may encourage loss-making generators to increase output

China said on Tuesday it will allow coal-fired power plants to charge some customers market-driven prices for electricity, as a worsening energy crisis persuaded authorities to rush through their boldest reform of the power sector in decades.

Responding to shortfalls in power generation brought on by shortages and record high prices for coal, the government has taken a range of steps to boost coal production and manage electricity demand at industrial plants.

To help power companies pass on the high costs of coal, the National Development and Reform Commission (NDRC) said that all electricity generated by coal-fired plants would be priced via