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Black-out, price leverage to save electricity
By Liu Li (China Daily)
Updated: 2004-06-09 22:38

Vice-Mayor Zhang Mao issued the warning on Tuesday. Detailed restrictions have not been determined yet.

Beijing has not had to cut the power supply since 2002.

This summer, nearly two-thirds of the country's 31 provinces, municipalities and autonomous regions are reportedly ready to restrict electricity use.

Beijing will face a shortage of 1.2 million kilowatts for the peak demand period this summer. Demand is predicted to be up to 9.5 million kilowatts, 14 per cent higher than in the same period last year.

Officials from the Beijing Municipal Commission of Development and Reform said basic living needs of local residents, especially urban residents, will be given priority.

Zhang assured that electricity for those including residents, schools, army, hospitals, railway, governmental organizations and water and gas facilities will not be influenced by the new policy.

"We are facing a stern electricity supply situation now," Zhang said.

Uncertainties on the supply chain pose a big threat.

About 60 per cent of the capital's electricity comes from other provinces.

According to Zhang, 24 per cent of the country's provinces, municipalities and autonomous regions are facing their own power shortages this year.

In the past, other provinces and municipalities would switch off their electricity to guarantee Beijing's steady supply in summer, the vice-mayor said.

Last year, 16 provinces and municipalities restricted their own electricity consumption.

Conversely, Zhang said, Beijing should play its part and contribute to countrywide conservation efforts, Zhang said.

In the summer of 2002, Beijing was forced to temporarily cut off power to three lines for civil use, said Tang Songhan, a press officer with the local electricity supply authorities.

One move that may help, is the city's first-time approach to use pricing to control usage.

The Beijing municipal government plans to adopt different electricity rates depending on the hours of the day. The new pricing system will apply mainly to enterprises, commercial facilities and hotels.

Electricity prices between 11 pm to 7 am are expected to be 20 per cent cheaper than the average rate while usage during busy hours, such as between 7 am and 8 am, 11 am and 6 pm, or 8 am and 11 am will cost more.

Exact charges have not been fixed, yet.A pricing plan has been submitted to the National Development and Reform Commission for approval.

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