China levers aluminum smelters with tiered power prices

China will impose a tiered power pricing system on aluminum smelters from Jan. 1 to cut overcapacity, the National Development and Reform Commission (NDRC) said on Monday. Power prices will stay unchanged for smelters that do not use more than 13,700 kwh per tonne of aluminum. Those that use 13,700 kwh - 13,800 kwh will pay an additional 0.02 yuan per kwh, according to a joint statement by the NDRC and the Ministry of Industry and Information Technology (MIIT). Smelters that consume more than 13,800 kwh per tonne will pay an additional 0.08 yuan per kwh. The new regime aims to eliminate inefficient plants and promote restructuring in the industry, the statement said. Similar measures are expected in other industries to force upgrades in the drive for sustained and healthy development. Enditem (1 yuan = 0.16 U.S. dollar)