China's top economic planner announced Tuesday an improved pricing mechanism for coal-fired power to deepen market-oriented pricing reform in the sector.

The floating range of the market-based electricity transaction prices are adjusted in principle to a range of 20 percent fluctuation in either direction, compared with the current ceiling of 10 percent and the floor of 15 percent from the benchmark price, said the National Development and Reform Commission (NDRC).

The market transaction prices of coal-fired electricity for high energy-consuming enterprises are not restricted by the ceiling of 20 percent upward fluctuation.

All local governments should give priority to the supply of low-cost power for residents and agriculture, said the NDRC.