A worker builds a transmission tower at a height of 385 meters on Thursday in East China's Jiangsu Province in order to complete the project on time. The 500-kilovolt tower will move electricity across the Yangtze River between Fengcheng and Meili in Jiangsu. Photo: cnsphoto

The trading price for electricity in East China's Jiangsu Province surged 19.94 percent in mid-October after the implementation of recently issued plans to improve the country's coal-fired power pricing mechanism.

The monthly listing and trading of electricity in Jiangsu for mid-October ended on Friday, with a total of 294 transactions being completed, and the electricity volume totaled 2 billion kilowatt-hours (kWh) and the average transaction price of reached 468.97 yuan ($72.87)/ megawatt-hours (MWh), according to a statement posted by the Jiangsu Electric Power Trading Center Co.

As the base trading price for the on-grid price of coal-fired power generation is 391 yuan/MWh in Jiangsu according to media reports, the transaction price for mid-October marked a 19.94 percent of increase than the benchmark price, which is close to the 20 percent price fluctuation limit. 

China's National Development and Reform Commission (NDRC), the country's top economic planner, on Tuesday announced plans to improve the country's coal-fired power pricing mechanism with measures such as expanding the fluctuation range for power prices. 

The floating range of market-based electricity transaction prices in principle will be adjusted to a two-way range of 20 percent, compared with the current ceiling of 10 percent and a 15 percent floor. Rates for coal-fired electricity for energy-intensive enterprises are not restricted by the 20-percent fluctuation limit.

Global Times