BEIJING -- The National Development and Reform Commission (NDRC) plans to raise on-grid power prices by 0.02 yuan per kilowatt-hour (kWh) in the provinces of Jiangxi, Hunan and Guizhou provinces in order to eliminate power shortages and boost local power companies' flagging profits.

The provinces of Henan and Hubei will also see price rises of 0.005 yuan per kWh, said an unnamed official familiar with the issue.

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A rise in on-grid power prices will improve local power companies' profit margins and reduce power shortages, the official said.

China's five major power producers reported 10.57 billion yuan ($1.62 billion) in losses during the first four months of this year, according to a statement issued by the China Electricity Council on Tuesday.

The official added that consumer prices for electricity will remain unchanged in order to avoid increasing China's already high rate of inflation.

The NDRC already raised on-grid power prices in 16 provincial areas in April. Prices were increased by 0.026 yuan per kWh in Shanxi province and by 0.02 yuan per kWh in Shandong and other four provinces.