CRI听力:Detailed Plans of Tiered Electricity Pricing Arises Debates

A number of provinces in China have issued detailed plans about the government's scheme to introduce a tiered electricity pricing system this year.

The new system is designed with three tiers. The lowest tier of users won't face an increase in prices, which applies to 80% of households. But prices will be raised by 0.05 yuan per kilowatt hour for the second tier and another 0.30 yuan for the third tier. Experts say the move not only helps promote energy conservation, but also the redistribution of social wealth.

The first tier threshold is the most controversial issue. Residents in many provinces worry that the first tier is so low that it can not cover 80% of households. Chen Ye, the marketing manager of China Southern Power Grid, uses the first tier threshold in Gangdong province as an example.

"Based on the power consumption figures in 2011, about 21.5 million households use 210 kilowatt hours or less a month. The total population of Guangdong province is about 26.9 million, so the proportion of the first tier households reaches 80.03%."

However, because city dwellers on average use more electricity than rural residents, more of them will be excluded from the first tier.

Professor Liu Jinshan of the School of Economics of Jinan University says that the city dwellers who enjoy better living standards should pay higher rates per kilowatt-hour.

"Any reform scheme must contain profits and costs. It's reasonable and feasible that the households in rich areas bear the costs."

Some residents suggest that preferential treatment be offered to high electricity consumption areas. Li Zhiqun, an officer of Price Bureau of Guangdong province, says that more pricing plans for different areas are workable, but it may bring new problems.

"It's unfair for the undeveloped areas if we take area differentiations into consideration. For example, in big cities and developed areas the first tier threshold can be 300 kilowatt hours per month, but residents in developing areas can only have 100 kilowatt hours of cheap electricity."

Some residents suggest the per person consumption threshold instead of total household usage, just like the tiered water pricing plans. Professor Liu Jinshan says that they are two different things.

"The water consumption increases proportionately with the number of the families. But for electricity, the whole family watches the one TV set and lights just one lamp."

The aim of the tiered electricity pricing system is to improve power efficiency and help ease the country's chronic shortage of power. Although the final pricing systems have not been set, the local government should pay more attention to protect the rights of the poor.

For CRI, I'm Wang Xiao.