China raised retail prices of electricity by an average of 2.49 cent (0.31 US cents) per kwh as of June 30, the country's second price hikes under its coal-electricity price adjustment mechanism.

The State Development and Reform Commission said on Friday said the price hikes were intended to balance the prices of coal and power, raise money to fund renewable energy production, install desulphurization facilities at coal-fired power plants, and more power grid projects.

China began to introduce the coal-electricity price adjustment mechanism as of May 1, 2005, under which the prices of coal for power generation and electricity from coal-fired power plants would fluctuate in response to the changing prices of coal.

Source: Xinhua