Opinions to be solicited for reform of power costs

Public hearings on plans to raise residential electricity prices will be held in major cities across China this week, with widespread resistance anticipated for the scheme, which will charge more for heavier usage in a bid to encourage power saving.

According to the guideline issued by the National Development and Reform Commission (NDRC) late last year, the reform will be implemented nationwide on June 1.

Provinces and municipalities including Shandong, Guangdong, Beijing and Shanghai have publicized their proposals to collect public opinion.

Electricity prices will be set in three tiers based on usage under the reform. Prices will be raised by 0.05 yuan ($0.01) per kilowatt hour for the second tier and 0.30 yuan for the third tier, but the price for the first tier remains unchanged, according to the NDRC plan.

The major principle of the reform is to ensure that residents under the first tier, which covers 80 percent of total residential users, will not see price hikes, the NDRC said.

"The reform aims to encourage the public to save energy, and make prices much more market-oriented," said Zhou Dadi, a professor at the Energy Research Institute under the NDRC.

The power threshold for the first tier varies. Beijing plans 230 or 240 kilowatt hours a month, for example.

Residents' opinions have been mixed over the new proposals.

"My family has to pay 30 yuan more each month under the new plan since my family is very big. The government should consider family size," said Wang Desheng, a 76-year-old Beijing resident who lives with his four family members.

However, Zhou said the country's power plants have suffered heavy losses for a long time, and even if residential prices are raised under the reform, it will be too little to offset the impact of climbing coal prices.