Market-based electricity transactions reduce company costs in Guiyang

According to Guiyang's bureau of industry and information technology, 482 industrial companies in Guiyang joined the market-based electricity transaction plan in 2020 and a total of 13.09 billion kilowatt-hours of electricity were sold, helping the companies reduce 650 million yuan ($99.36 million) of costs.

From 2016 to March of this year, Guiyang sold 62.8 billion kWh of electricity based on the market price, reducing total costs of 4.24 billion yuan for companies.

With electricity costs being one of the major costs for industrial companies, market-based transactions can lower electricity prices to cut costs.

According to regulations, companies with annual electricity consumption of over 5 million kWh can buy directly from power plants, and those under 5 million kWh can choose electricity allocation and sales enterprises as representatives to participate in the market-based transaction plan.

In recent years, Guiyang has held meetings to encourage more companies to choose market-based electricity transactions. In 2020, Guiyang's average electricity price was 0.32 yuan per kWh, which was 0.03 yuan cheaper than the provincial benchmark price for thermal-electricity.

This year, Guiyang will encourage qualified companies to take part in market-based electricity transactions and allow more small and medium-sized enterprises to enjoy cost reductions.