China’s electricity price cuts save companies $18bn

17th June, 2019 09:33:18 printer

BEIJING: China cut electricity tariffs for industrial and commercial businesses by 10.1 percent last year in order to alleviate financial burdens on companies and inject vitality to the economy.

The move saved industrial and commercial businesses 125.79 billion yuan (about 18.25 billion U.S. dollars) in 2018, although this led to a 24.3-percent fall in power grid firms’ profits, according to a report released by the China Electricity Council, reports Xinhua.

Power generating companies reaped a combined profit of 221 billion yuan last year, up 23.8 percent year on year, due to a low comparison base and a relatively fast growth in the amount of electricity generation.