"It is good to require provinces and industries to take part in this energy-saving drive," he said.

But he warned against fraud in the reporting of energy consumption by some regions.

A recent report on world energy resources by BP, one of the world's largest energy groups, said that although China has maintained a rapid rate of growth, its energy consumption growth rate has declined from 15.5 per cent in 2004 to 9.5 per cent in 2005.

To curb the growth of energy thirsty industries, the NDRC has decided to increase the price of electricity by an average of 0.025 yuan (0.3 US cent) per kilowatt-hour since last Friday.

The price adjustment, according to the NDRC, will not have a huge impact on household expenses.

"It will promote the development of renewable energy, fund more power grid projects and resolve the contradiction caused by rising coal prices," said a statement issued by the NDRC.