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Flexible energy charges to help aluminum industry

By Jiang wei (chinadaily.com.cn)
Updated: 2009-03-04 11:32

Fifteen aluminum producers will soon be allowed to negotiate directly with power plants to set electricity charges, according to the National Development and Reform Commission and the Ministry of Industry and Information Technology.

The 15 companies, including Yunnan Aluminum, Fushun Aluminum and Shandong Aluminum, are selected for the pilot program.

Electricity accounts for 40 percent of the total cost of the aluminum producers. Experts said businesses are expected benefit a lot from the new policy if they can convince power companies to cut unit price by 0.04-0.05 yuan.