China will impose tiered power pricing on all aluminium smelters starting from January to help eliminate inefficient plants and tackle severe overcapacity in the sector, the National Development and Reform Commission (NDRC) said on Monday.

Power prices will remain unchanged for smelters that do not use more than 13,700 kilowatts for each tonne of aluminium produced, while those that use between 13,700-13,800 kilowatts will be charged an additional 0.02 yuan per kilowatt.

Smelters that consume more than 13,800 kilowatts of power for each tonne of aluminium produced will be charged an additional 0.08 yuan per kilowatt, the NDRC said in a statement.