China's National Reform and Development Commission said Tuesday it has issued three new regulations on electricity pricing, which link the price of electricity with that of fuel.

The regulations concern the price of electricity power grids buy from power generation companies, the price of electricity transmission, and the price of electricity power grids sell to users, said an official of the commission.

According to the regulations, the purchase price will be set in line with the principle of reasonably compensating the cost and reasonable profit and tax, or by means of government bidding. The purchase price will fluctuate according to changes in the price of fuel.

The formulation of the price of electricity transmission is based on the "cost plus returns", said the official.

The sale price falls into three categories -- civil use, agricultural use and industrial and commercial use.

The government will adjust the electricity price for agricultural and civil use on a regular basis. Hearings will be held before adjusting the electricity price for civil use. The electricity price for industrial and commercial use will be linked with the electricity purchase price. 

(Xinhua News Agency April 6, 2005)