The current shortfall in electricity in China is already starting to hurt production, writes Bill Dodson in his weblog. As the summer nears, problems will increase. An its basically a government policy cause the problem.
Much of the shortfall has to do with the government-controlled price at which steam coal is sold to power stations; the price is lower than market prices, so coal producers are simply choosing not to sell their coal to the electricity generators. The government, for its part, is loathe to lift the ceiling on coal prices, as inflationary pressures are already aggravating a populace edgy for the good life – which, of course, requires increasing amounts of electricity.
However, judging by my electricity bills this past summer, I’m also loathe to see my electricity bills increase any further.
- All foreign books to be banned in China? – Bill Dodson (chinaherald.net)
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- What about your contingency plan? – Bill Dodson (chinaherald.net)
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