China cuts electricity charges for electric cars

The Chinese government is slashing rates for the use of charging stations for electric vehicles.

Under the new pricing scheme, charging stations in residential areas will cost the same as residential electricity rates.

Cao Hongbin, general manager of new energy company China Potevio, says the move is designed to encourage the development of new energy cars.

"Regardless of whether its an industrial price or residential price, it is lower than the previous price. I think the new plan should cut prices by around 30 percent, which, of course, will lower the cost of using an electric vehicle."

Industry insiders say the high cost of setting up charging stations has been hindering China's electric car industry from getting private investment.