China will relax the fluctuation range of the market price for electricity to 20 percent up or downward, according to a State Council executive meeting chaired by Premier Li Keqiang on Friday.

China is set to improve the market-oriented formation mechanism of coal and electricity prices in the backdrop of a tight domestic power supply.

For residential, agriculture and public welfare sectors, the fluctuation range of market transaction electricity prices will be adjusted from no more than 10 percent and 15 percent, respectively, to no more than 20 percent in principle. Prices can break the 20 percent ceiling for high-energy-consuming industries, it was decided at the meeting.