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Heat supply price to float with coal price
(Xinhua)
Updated: 2005-11-08 17:17
The State Development and Reform Commission (SDRC) and the Ministry of
Construction jointly issued a circular recently allowing the heat supply price
to fluctuate with the coal price change, an SDRC source announced on Monday.
Despite China's general evolution from a planned economy to a market economy,
the prices of some resource products monopolized by state-owned enterprises,
including electricity, water, oil and heat supply, are still set by the
government and do not fluctuate according to the supply and demand relations in
the market.
In recent years, although China's coal price has been rocketing, the price of
electricity and heat supply did not follow such changes, making many power and
heat enterprises witness serious deficits due to increasing costs and stable
sales prices.
According to the recent circular, when the coal price rises over 10 percent,
heat suppliers have the right to adjust their heat factory price accordingly,
the SDRC said.
Previously the government issued a circular to let electricity prices
fluctuate with coal prices, which is decided mainly by market supply and demand.
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