Make use of pricing as a lever to regulate demand of electricity

In 2004 and in the years to come the Shanghai Power Grid will still face a severe situation of electricity supply. In order to mitigate the contradictions caused by the shortage of power, pricing lever should be made use of to regulate the electricity demand. The measures suggested include incessantly augmenting the scope of application of the electricity price variance between metering periods and widening the price difference between the peak and valley period step by step. Several other measures such as the high reliability electricity price, electricity price for the interruptable loads, the peak load electricity price for the residents, the different electricity price between the peak and valley period for the power plants, widening the scope of application of the two-part electricity price variance between the metering periods, regulating the preferential electricity price for the high energy consumption industries and at last developing the DSM funding mechanism combining the successful experiences abroad can also be put into trial operation.