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Energy prices lowered to warm rural consumers

By ZHAO YIMENG in Beijing and ZHANG YU in Shijiazhuang | China Daily | Updated: 2026-01-21 09:22
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Major energy suppliers in cities including Baoding, Langfang and Handan have cut natural gas prices by 0.2 yuan (3 cents) per cubic meter for the remainder of the winter heating season, better serving the local residents.

On Jan 15, ENN Energy's Baoding office lowered the terminal sales price for rural households that have switched from coal to gas to 2.98 yuan per cu m. Similar notices were issued in Langfang, Handan and Zhangjiakou, all in Hebei province, with gas providers pledging to keep prices affordable and avoid supply disruptions.

Some households also received a one-off heating subsidy of 200 yuan, according to China Youth Daily.

"Coal-to-gas" residents refer to rural households in northern China that have replaced bulk coal with natural gas for winter heating under a government program aimed at reducing air pollution.

Starting in 2017, the transition has greatly improved air quality in the region. Yet many rural residents said the cleaner alternative used to be a heavy financial burden.

In neighboring Shanxi province, a resident surnamed Hu from Dingxiang county told People's Daily early this month that while the policy benefited the environment, it has strained household finances. In late 2024, local gas prices rose from a base level of 2.26 yuan to more than 3 yuan per cu m for higher consumption tiers.

"To get through the winter, even by cutting every possible expense, it still costs several thousand yuan,"Hu said. "My elderly parents only turn on the wall-mounted gas furnace when they really can't endure the cold. It's freezing indoors, and they have to wear thick coats inside the house."

Similar concerns were voiced in Huaxian county, Henan province. A local resident surnamed Lyu said that while the initial installation of gas equipment was subsidized, operating costs have surged. With tiered pricing reaching 3.72 yuan per cu m at higher usage levels, Lyu estimated that heating a home comfortably through the winter could cost up to 10,000 yuan.

"That is far beyond what villagers here can afford," he said.

Experts attributed the high costs to several structural factors. Unlike urban areas, rural villages have a low population density and scattered housing, which raises the per-household cost of building and maintaining gas pipeline infrastructure.

"Inspection, maintenance and service costs are much higher in rural areas," said Liu Mengdi, a professor specializing in environmental governance at the University of International Business and Economics.

In addition, subsidies that were generous during the early stages of the transition have gradually been reduced in recent years, shifting more of the financial burden onto farmers.

Pang Jun, dean of the School of Ecology and Environment at Renmin University of China, added that county-level gas companies often lack the bargaining power to secure lower wholesale gas prices.

While central government plans emphasize heating solutions tailored to local conditions, some local authorities in northern regions promoted gas heating aggressively, as pipeline installation offered a fast way to meet "zero coal" targets.

"Relying on natural gas as the primary source for clean heating is reasonable overall," Pang said. Other renewable options such as geothermal and solar energy may face challenges such as unstable supply or the need for new infrastructure, he said.

Meanwhile, cleaner coal technologies face regulatory hurdles, as it is difficult to prevent traditional coal from being mixed in during actual use, Pang added.

Experts suggest exploring more diversified clean energy mixes. Heating solutions should be precisely matched to local resources, economic conditions and living habits, rather than relying on natural gas alone.

In Sanggang village, a mountainous area of Yixian county in Hebei where gas heating is unavailable, about 60 percent of villagers have switched to air-source heat pumps, which extract heat from outdoor air to warm indoor spaces.

Xie Guoqing, 59, and her husband Zhao Guosheng, 55, invested 30,000 yuan to install a high-quality heat pump system in 2021. A year later, they also spent around 7,000 yuan insulating the exterior walls of their 130-square-meter home to improve heating efficiency.

The couple told China Daily that their electricity bill from November 2024 to March 2025 totaled about 2,300 yuan, significantly lower than the more than 3,000 yuan they previously used to spend on coal.

"Burning coal was dirty and didn't save money," Xie said. Their home now maintains a winter temperature of 18 to 19 C, which Zhao said is both cheaper and more comfortable than using air conditioners.

A local window and door manufacturer, Zhao added that his annual income of around 100,000 yuan is sufficient to cover the current heating costs. However, he said that some neighbors in the village choose to migrate to cities during the winter to live with their children and save on heating expenses.

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