Shanghai's businesses and industries will be paying 10 percent
more for coal gas starting today?-- the first step in a
pricing reform plan meant to encourage more efficient use of the
energy resource.
Coal-gas prices for commercial customers will also jump in the
fourth quarter next year, bringing the overall increase to 20
percent, the Shanghai Price Bureau said over the weekend.
Adjustments for residential users will be announced in the
second half of next year.
Under today's rate hike, non-residential customers will pay an
additional 0.2 yuan (2.56 US cents) for every cubic meter of coal
gas, bringing the base fee to 1.65 yuan.
In October 2007, base prices will rise to 1.8 yuan.
A seasonal pricing mechanism, designed to discourage energy use
during peak periods, will remain in effect.
From December to March, rates are raised 0.2 yuan above base
rates, bringing today's total coal-gas charges to 1.85 yuan per
cubic meter.
Public primary and middle schools, college and university
canteens and bath houses, military units and non-profit homes for
the elderly are exempt from the price hike.
Retail prices for non-residential gas users will be updated once
every year to track supply.
"The additional charge will be used to counter increased
production costs of gas suppliers, and city government will form a
special supervision team to oversee the matter," the Shanghai
Municipal Information Office said in a statement.
It noted that low-income residents will be given special
consideration during deliberations on possible price adjustments
for residential customers next year.
The Shanghai Gas Group Co proposed in a public hearing in
mid-September that residential rates for coal gas and natural gas
be increased by at least 19 percent. It said the rising cost of
coal had put great pressure on gas production, and the increasing
demand for natural gas would result in a supply shortfall.
The gas company suggested a residential pricing system based on
a family's annual consumption. The more gas a family burns, the
higher the rate would be.
Shanghai had more than 2 million coal gas users, 2.2 million
natural gas customers and 2.5 million liquefied gas customers as of
September.
(Shanghai Daily December 11, 2006)