Reports: China hiking electricity rates

SAN FRANCISCO -- In an effort to stave off power shortages this summer in major cities, China is raising electricity prices for many consumers, according to reports.

Factories have been ordered to use power more efficiently and shut down when the weather gets too hot; and shopping centers have been told to cut back on lighting and air conditioning, according to reports from the Associated Press citing Chinese state media.

China raised electricity prices in the past week across a large part of the country by an average of 0.02 yuan (two-hundredths of a U.S. cent) per kilowatt-hour, adding to the rate of about 0.5 yuan (6 cents) per kilowatt-hour, state newspapers have reported.

Some cities also are introducing seasonal pricing. In Beijing, prices will rise by 11 percent during peak times between June and October, the China Daily newspaper said recently.

CBS MarketWatch