At present, China' s energy price level is lower, however, the upward trend in the future will make the Chinese government face two embarrassments while it draws up the energy price, Li Ying, the chief economist of energy institute of the State Grid said.
According to Li' s remarks, the first embarrassment means that while raising the energy price, the Chinese government and authorities should consider that the energy price should compensate the reasonable costs and reflect its value. Thus the resources can be optimized to large extent. But we also should be aware whether this will affect the international competitiveness of Chinese products.
Second embarrassment refers to the phenomenon of cross subsidy in energy price. Li said, the occurrence of this phenomenon in China makes the energy price reform become more sensitive. In contrast, the sensitivities abroad is extremely low. The main cause is that the residents across China are the subsidy receivers. No matter the natural gas or the electricity price for residential use, they all are closely associated with people' s daily life.
