China: First power pricing case results in fine

The National Development and Reform Commission (NDRC) fined the Shanxi Province Electric Power Association and 23 thermal power plants 73.38 million yuan (US$10.92 million) for monopolistic pricing, settling China’s first antitrust case on power supply, the top economic planner said yesterday.

The Shanxi Province Electric Power Association made some domestic thermal power companies sign a pricing agreement on January 14, 2016.

Under the agreement, the companies sold their electricity at a discount of no more than 0.02 yuan (US$0.003) per kilowatt-hour from the standard price, and set a minimum electricity price of 0.3 yuan (US$0.04) per kilowatt-hour.

This was reported to the national pricing supervision platform and relevant departments in Shanxi Province two weeks later because it violated antitrust laws, the NDRC said.

China initiated power pricing reform in 2015, which demands competitive pricing among power plants. They are encouraged to sell electricity directly to users and discuss prices with them.

Full Content: Sina English

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