TWO eastern China provinces are raising electricity prices for factories amid increased environmental scrutiny and higher fuel costs.

Jiangsu, one of China’s major manufacturing bases, has hiked power tariffs for nearly 30 large factories either because they missed energy efficiency targets or are using outdated equipment.

Zhejiang, which has been a strong player in the digital economy sector, is seeking feedback on a proposal to boost power rates for more than 600 factories to cover higher natural gas costs.

The moves come after global coal and gas prices soared following Russia’s war in Ukraine and underscore China’s focus on reducing emissions and shifting its economy away from the large polluting industries of the past to more efficient high-tech sectors.

Since late last year, local governments in China have been allowed to raise electricity tariffs for industrial users, including an unlimited price ceiling for the biggest polluters, in an effort to reduce air pollution and meet climate goals.

In Jiangsu, which has an economy roughly the same size as South Korea, regulators raised power prices by as much as 0.5 yuan (7 U.S. cents) per kilowatt-hour starting May 1.

Zhejiang is proposing to raise rates from July 1 to Dec. 31 by 0.172 yuan per kilowatt-hour for sectors including cement, glass, ceramics, metals and petrochemicals. (SD-Agencies)