From Chinese Press

Duplicity of power firms

(China Daily)
Updated: 2011-05-16 09:06

Recently some regions have witnessed power shortages, prompting some people to say that the government should raise the electricity tariff further. But decision-makers need to think twice before taking such a move, says an article in Qilu Evening News. Excerpts:

The National Development and Reform Commission, China's top planning body, raised the electricity tariff in some provinces at an average of 0.012 yuan per kWh in mid-April, and it is likely that it will do so in other provinces and regions soon.

But a higher electricity tariff will increase inflationary pressure on people. The consumer price index was above 5 percent in April, and if the electricity tariff is raised further, the lives of ordinary people, especially the poor, will be hit most.

Why is that power plants are running a deficit despite making huge profits. Recently, a power company in Anhui said that it spent 376 million yuan to purchase cars for its 300 senior staff members. The average salary of power sector employees is two to three times that of people in other sectors.

It is indeed ridiculous for power companies earning huge profits to plead deficit and threaten to ration electricity supply this summer.