On May 24, the Beijing Municipal Development and Reform Commission issued the “2011 Beijing Energy Work Points” (hereinafter referred to as the “Working Points”). This year, Beijing Municipality will implement total energy consumption control in districts (counties) and some key industries.

The "Working Point" mentioned that Beijing will promote price reforms in key areas such as electricity, gas, heating, and new energy, timely and appropriately adjust the price-to-energy relationship among various varieties of energy, and promote resource conservation, energy conservation and emission reduction.

For the most concerned energy, gas, heat and other energy prices, the relevant person in charge of the Beijing Municipal Development and Reform Commission said that Beijing will strictly follow the unified pace of the National Development and Reform Commission and fully consider the primary task of stabilizing prices. This may mean that as long as prices are still high, there will be no public action on energy price reforms for the time being.

In November last year, the Beijing Municipal Development and Reform Commission conducted a hearing on natural gas price adjustments. According to the results of the hearing, the price of natural gas for residents was adjusted upward by 0.23 yuan per cubic meter, which was adjusted from the current 2.05 yuan per cubic meter to 2.28 yuan per cubic meter, with an amplitude of 11%. The natural gas price adjustment process has been basically completed, but it has not yet been adjusted.

In October last year, the National Development and Reform Commission also issued a ladder tariff plan, and solicited opinions from the whole country and reported it to the State Council. The National Development and Reform Commission has stated that after consulting the public, it will further revise and improve the plan and guide the provinces to carry out their work. Specific plans for the tariffs for each province (autonomous region or municipality) will be implemented by the provincial competent price departments after hearings are organized.

According to industry analysis, energy price reform will be affected by the macroeconomic environment, but the direction of reform will not change.

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