Following the recent price increases in gas meters leading to higher gas usage costs and increases in high-speed rail fares in various parts of China, news of raising water and electricity prices has once again surfaced recently, leaving the public discontented.
According to a report by “Financial Times” on May 12, villagers in Hepu Village, Jiexi County, Jieyang City, Guangdong Province, recently complained about a doubling of electricity prices. Villagers in Hepu Village reported online that the electricity price for residents has increased from 0.3 yuan/kWh to 0.68 yuan/kWh, with the price rising along with increased electricity consumption.
Villagers explained that the previous electricity price of 0.3 yuan/kWh was due to the efforts of local elderly people in building a reservoir for the local government, signing a contract with the local government to enjoy discounted electricity prices. However, after the power supply department took over the local electricity grid and other power assets, the corresponding electricity price adopted the same grid and the same price to implement residential electricity payment, setting the price at 0.68 yuan/kWh, which has made villagers feel unacceptable.
Currently, residential electricity in the country is tiered, mainly divided into three levels. In Guangdong Jieyang, the electricity price standards for residents are: the first tier price is 0.678 yuan/kWh; the second tier price is 0.728 yuan/kWh; and the third tier price is 0.978 yuan/kWh.
Public data shows that Hepu Village is located in Zhongxi District, Jiexi County, 2 kilometers from the county seat. Villagers mainly engage in farming, with some involved in commerce. The aforementioned villagers stated that the average wage in the area is 2,000 yuan, and the increase in electricity prices has added significant pressure on household electricity expenses during the summer, impacting their livelihoods.
The issue of rising electricity prices in Jiexi County has once again sparked public attention in China regarding residential electricity problems.
In addition to the aforementioned Jiexi, reports have emerged from Hubei, Sichuan, Jiangsu, and other regions that there are discussions about “cancelling the valley peak pricing for residential electricity and switching to segmented pricing.”
According to reports from Daxiang News, a recent message regarding the adjustment of residential electricity prices has caught the attention of many netizens. The message stated that starting from June 1, valley peak pricing would be abolished, replaced by segmented pricing based on time of use, with an increase in electricity prices.
The netizen who posted the message had an IP address in Hubei, and the message claimed that electricity prices had increased, with the adjustment starting on June 1, 2024, cancelling the valley peak plan, and switching to time-of-use pricing.
The article mentioned that time-of-use pricing is divided into five periods: 8 am to 12 pm (electricity price per kWh is 1.08 yuan); 12 pm to 5 pm (electricity price per kWh is 0.68 yuan); 5 pm to 9 pm (electricity price per kWh is 1.08 yuan); 9 pm to 12 am (electricity price per kWh is 0.68 yuan); 12 am to 8 am (electricity price per kWh is 0.31 yuan), with even mentioning “there is a 20-day buffer period.”
According to a report by East Net, a content about “Shanghai cancelling the valley peak pricing and switching to segmented pricing for electricity from June 1” spread on social media platforms.
Based on reports by Polar News, as May approached, in Huangshi, various residential communities have been circulating messages about the cancellation of valley peak pricing and the switch to time-of-use pricing for electricity starting from June 1, resulting in an increase in electricity bills.
In fact, as reported by “China City News,” only in 2023, Beijing, Shandong, Hubei, Liaoning, Ningxia, Xinjiang, Gansu, Fujian, Hebei, Anhui, Yunnan, Qinghai, and other 11 provinces have implemented new policies on time-of-use electricity pricing.
In addition to adjustments in electricity prices, water fees are also stirring. According to a report by The Paper, during a public hearing on the reform plan for water prices in the central urban areas of Guangzhou held on May 9, out of 17 “representatives,” 16 “supported” Guangzhou’s Development and Reform Commission’s water fee increase plan.
On May 12, NetEase published a commentary article from the “Digital Financial Think Tank,” stating that holding a public hearing was just a formality. In reality, most netizens are not primarily concerned about the rise in water fees in Guangzhou, but rather they worry that the “wave of price hikes” will spread to their own cities, leading to increased living costs.
The article stated that prior to water fees, gas prices, high-speed rail prices, and electricity prices have already started to rise. It is expected that more areas will adjust water fees.
Earlier, notices were issued in Tongling, Anhui Province, Shishi, Fujian Province, Yongzhou, Hunan Province, Xiangyang, Hubei Province to raise water supply prices.
As a major transportation method in China, high-speed rail has also begun to raise prices. China Railway’s official website 12306 recently announced four price adjustment notices, declaring that from June 15, the D-prefix trains of Wuhan-Guangzhou high-speed rail, Shanghai-Hangzhou high-speed rail, Shanghai-Kunming high-speed rail, and Hangzhou-Ningbo high-speed rail will increase in fares. The first and second-class seats will increase by around 20%, and the business class seats will see the highest increase of nearly 40%.
It is worth noting that the Chongqing Gas Company, a central state-owned enterprise under China Resources Group, announced in a performance bulletin on March 4 that the company achieved a total operating income exceeding 10 billion yuan last year, with a staggering 824% increase in net profit in the fourth quarter of last year.
The sudden surge in profits of Chongqing Gas Company has raised public questioning whether it is related to the “speeding up” of gas meters, leading to some local residents taking to the streets to protest for their rights. Under public pressure, the Chongqing municipal government announced the establishment of a joint investigation team to enter the involved companies. Soon after, local residents found their gas meters deliberately “slowing down.”
Since the beginning of this year, residents in areas such as Chongqing, Sichuan, Changzhou, Jiangsu, Hefei, Anhui, Nanchang, Jiangxi, and Dongguan, Guangdong have already started to report cases of rapid meter speed increase and soaring gas costs at home.
It is important to note that data released on the website of the National Bureau of Statistics of the Communist Party of China showed that from January to March this year, the profit total of China’s electricity, heat, gas, and water production and supply industry increased by 40.0%. The data indicates that the state-monopolized industries such as water, electricity, gas, and other essential services have achieved profit growth rates exceeding those of the automobile manufacturing industry, becoming one of the most profitable sectors.
The aforementioned NetEase article believes that in the past, small and medium-sized cities relied on selling land and higher-level transfers to get by pretty well. Currently, most small and medium-sized cities are under financial pressure. As land sales slow down and higher levels run out of money, there is a need to spend everywhere, so what can be done? The only solution seems to be for everyone to bear the burden together.