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Shandong's aluminium smelters feel the heat of power pricing reforms

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11 October 2018

Shandong's aluminium smelters feel the heat of power pricing reforms

Report summary

On 14 September 2018, Shandong provincial government announced it will regulate power price policies for coal-fired captive power plants (CPPs). Under the policy, these plants must pay the cross-subsidy, governmental funds and system reserve fees, with effect from 1 July 2018. 50% discount are being offered on cross-subsidy until 2020. The policy also includes an alternative – discount on transmission network charges to encourage CPPs to become utilities.

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