CHINA’S top economic planner said yesterday it will allow greater fluctuations in coal-fired electricity prices in a move to liberalize the country’s power market amid an ongoing energy crunch.

Under the reforms, prices of coal-fired power can rise or fall by up to 20 percent from a benchmark level based off existing local prices. That compares with the current upper limit of 10 percent and lower limit of 15 percent, according to a notice from the National Development and Reform Commission (NDRC).

The 20 percent upper limit won’t apply to industries with high energy consumption, according to the notice.

The new measures, which will come into effect Oct. 15, will let the market have a “decisive effect” on resource allocation, while ensuring stable power supply and price stability for households and the agricultural sector, the economic planner said.

The NDRC said that China will fully liberalize pricing for electricity generated from coal and that industrial and commercial users will all have to buy from the market. It said that 100 percent of electricity generated from coal-fired power will be priced via market trading, up from 70 percent in the country now.

Industrial and commercial users “as soon as possible” will have to buy directly from the market or via agents over the power grid, up from 44 percent of such users who currently buy direct from the market. Other current buyers pay fixed prices. (SD-Agencies)