China has achieved expected results in energy saving and emission reduction by price policies.

    According to the latest statistics of State Electricity Regulatory Commission (SERC), China introduced price discrimination policies on 2,204 high consuming enterprises in 2007, with 1,769 to be eliminated and 435 to be restricted.

    These enterprises paid extra electricity charge of 652 million yuan for 9.357 billion kWh in 2007.

    One example is the steel and iron industry. By the end of 2007, 1,374 steel and iron companies were levied surcharge of about 500 million yuan for 4.8225 billion kWh.

    Since the implementation of price discrimination policies, about 2,000 high consuming enterprises were closed or transferred businesses, with above 70 percent to be eliminated, said Tan Rongyao, Presidentof SERC.

    Besides price discrimination policies, preferential electricity price for desulfurization is another to promote energy saving.

    In 2007, China's coal-fired desulfurization generating units boasted installed capacity of 270 million kWh, about 50 percent of installed capacity in coal-fired power.

    The same year saw power plants executed desulfurization in producing power of 938.786 billion kWh, accounting for 41.2 percent of total on-grid power. The additional charge amounted to 14.334 billion yuan, with the extra15 yuan/mega watt.

    The policy stimulates power plants to install desulfurization equipment to reduce the emission of carbon dioxide.

    In 2007, the carbon dioxide emission by power plants fell 9.1 percent from 2006 to 12.27 million tons, said Tan, and that byChina's five power giants went down 13.2 percent.

    China levied surcharge of 1.876 billion yuan on renewable energy power and granted subsidy of 951 million yuan to renewable energy power in 2007.

    One example is wind power development. China added installed wind power capacity of 3.31 million kW in 2007, accounting for 3.6 percent of the year's newly added installed capacity.

    For small thermal power generators, the on-grid power price was cut down to push them for closure. In 2007, 553 small thermal power units were closed, with installed capacity totaling 14.38 million kW.

    The different electricity price in a day promotes customers to make full use of power.

    For the provinces rich in water, price discrimination was executed according to the water level.