China's Guangdong to hike electricity prices amid power shortage

Amid rising concerns over a power shortage in the country, China's manufacturing powerhouse Guangdong Province said it will widen the "peak-to-valley" price difference and hike peak electricity prices by 25 per cent for industrial users.

Chinese state media Global Times reported that this power shortage threatens to weigh down industrial production in the coming months.

The hike in peak electricity prices is for industrial users and will not apply to residential power use, said China South Grid. This comes as the change in prices in the southern economic powerhouse happened as a shortage of electricity struck China.

A day earlier, China's power grid operator had denied there was an energy crisis and promised to upgrade the national power grid and guarantee a normal power supply.

The cuts and restrictions have been implemented piecemeal by local governments, often with scant warning and little explanation, sparking public anger, Radio Free Asia reported.

"China's energy supply capacity is currently sufficient to meet demand," State Grid Corp. said in comments reported by the Global Times. "China has no energy crisis," it said.

Despite China's denial, major international suppliers are bracing for impact on businesses already confronting delays caused by shortages and global shipping delays.

According to media reports, the shock is even leading experts to cut growth expectations for China.

Meanwhile, some sections of the Chinese media have also called for a balance to be struck between climate targets and allowing the power crisis to get out of control.

( With inputs from ANI )