China generates a lot of electricity but from what I understand prices aren't that much different to in the USA because of grid constraints.
China generates a lot of electricity but from what I understand prices aren't that much different to in the USA because of grid constraints.
I'm not sure how much you pay in USA. But I live in Beijing, where the residential electricity price is about 0.5 RMB per kWh, roughly 0.0749 USD.
China's electricity pricing involves cross-subsidies. Residential and agricultural users pay the lowest rates, which are generally below the cost of supply. Commercial and industrial users pay more and contribute the most of grid revenue.
Prices vary by region: commercial electricity can approach 1 RMB (0.15USD) in Beijing, but the national average is about 0.67 RMB (0.1USD), while industrial electricity averages around 0.63 RMB nationally.
And that half a RMB doesn't include extra fees or delivery rates vs supply rates, correct? It's the all in rate?
I'm not quite sure what you mean by "extra fees or delivery rates," but this is the total amount I pay for electricity, no additional charges.
In my state in the US, they started differentiating between a "supply" rate, as in who generated your electricity, versus a "delivery" rate, or who delivered the electricity. That way they can market the supply rates to you and charge you on delivery additionally.
That sounds a little complicated, do the two parts actually adjust dynamically?
In China, end users pay a single bundled retail electricity price that already includes the full cost of both generation and delivery. The State Grid company purchasing electricity from generators and settling with them centrally.
Electricity prices are also government-regulated, and any change must go through public notice and approval.
Supply rates can adjust dynamically but not delivery, though delivery rates have been creeping upwards as well.
At similar prices and 1/4th or whatever the average salary, meaning the average person has to use a lot less energy, or spend a larger % of their budget on it