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| Inner Mongolian Government / China Rises Electric Power Fee From September |
| = Policy To Rise Power Fee By Central Government Is Permeating Into Provinces, By CNY0.07 Per 1 KWH |
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The Government of Inner Mongolia Aut. Region announced to rise electric power fee from September of 2008 and the fee is risen by CNY0.07 per 1 KWH from September in Inner Mongolia. This rise of power fee is applied to consumers, for whom electric power transmission corporation is supplying electric power. The Central Government of China announced on the 1st of July a basic policy to rise electric power fee ( retail sale price by electric power transmission corporation ) by CNY0.02 per 1 KWH on the average of the whole China after an interval of 2 years. In addition, the Government decided on the 20th of August to approve the treatment to rise electric power fee to be sold by electric power generation corporation. On the basis of these decisions, the government of each province and each aut. region investigated to rise retail sale price of electric power. In line with this tide, the Government of Inner Mongolia Aut. Region decided to rise electric power fee by CNY0.07 per 1 KWH from September. It was also informed that, in the same case as that in Inner Mongolia Aut. Region, the Governments of Gansu Province and Guangxi Zhuang Aut. Region have risen electric power fee by CNY0.07 per 1 KWH, effective from the 1st of September. The fees of electric power in China have changed in accordance with the cost of sources to generate electric power (by heavy oil, coal, hydraulic power and nuclear power). Inner Mongolia generates electric power by coal and, therefore, a rise of CNY0.07 per 1 KWH is very high in comparison with CNY0.02, which has been indicated by the Central Government of China as a guideline. Also, the Government of Inner Mongolia Aut. Region has already decided the policy to restrict the maximum quantity of ferro-alloys to be produced in Inner Mongolia to be less than 3,0000,000 tons per annum and this policy will be penetrated further into the industry to produce ferro-alloys. Namely, various regulations are enforced with an aim to screen the production of ferro-alloys by small and medium plants but this selection of the plants will cause such minus effects as a decrease in local income. Therefore, the Government of Inner Mongolia said to arrange at the same time the measures to underpin its monetary situation. This arrangement is due to the judgment, which it is necessary to make a financial assistance in order to permeate the policy determined by the Cent Government of China into the end of local government. A rise of CNY0.07 per 1 KWH is estimated to push up the cost to produce ferro-alloys as follows ; <> ferro-silicon by US$90 per ton and <> silico-manganese by US$45 per ton. In view of the fact that Japanese customers have maintained the structure to hold back their purchases of silico-manganese and ferro-silicon in July to August, the market prices of these two ferro-alloys have weakened on a basic tone but, being stimulated by a rise of electric power fee as mentioned above, the prices of these ferro-alloys are anticipated to rebound. |
| last modified : Mon 01 Sep, 2008 [11:26] |
