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On Tuesday, many Beijing residents flocked to banks to refill electricity cards before yesterday's power charges went up - by 4 fen (0.48 US cents) from 0.44 yuan (5.3 US cents) per kilowatt hour. Seventeen times more electricity were bought on Tuesday than normal.
In Beijing, unlike other cities, energy for domestic consumption can be bought in advance. IC cards can store up to 2,000 kilowatt hours, and by buying in bulk like this, Beijingers can save 80 yuan (US$9.64).
The rising charges have come about partly as a result of higher coal prices, which have pushed up the cost of power generation.
But there was another reason for increasing the rate - to make people more aware of the need to save energy. Small increases will be implemented on a regular basis under plans by the State Electricity Regulatory Commission and the Asian Development Bank.
Some believe it wrong that the price for domestic electricity is so much lower than that used in industry.
Because there are high peaks and low troughs in residential consumption, it costs more to keep a steady supply of power to meet demand.
In Western countries the trend is that private homes pay more than factories. Chinese incomes being so much lower, this model is not practical for China. But it is time to reform the country's pricing system.
A progressive system should be introduced in a uniform way as has been proposed with water rates. Extra charges are made if consumption exceeds certain quotas, and this discourages waste.
Poorer families find themselves standing in queues at banks waiting to buy up electricity in bulk, where the better-off feel no pinch from a 4 fen per kilowatt hour increase. They might notice it more if progressive pricing were introduced.
Saving power requires all-round effort and not just a curb on consumption.
Power generation plants should use advanced technology to reach full coal combustion and develop new, recyclable energy.
Management and supervision should also be strengthened to make sure coal is mined to the optimum.
(China Daily November 11, 2004)
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