BEIJING, Aug. 19 (Xinhua) -- China will raise the price of coal-fired
electricity at which power grid operators buy from generators beginning from
Wednesday, in a bid ease cost pressure for generators and power shortage in
certain regions, according to the country's economic regulator on Tuesday.
The on-grid price of coal-fired electricity will be raised by 0.01 yuan
(0.145 U.S. cents) to 0.025 yuan per kwh as of Wednesday, the National
Development and Reform Commission said in a circular.
Power prices in the northwest Xinjiang Uygur Autonomous Region and Tibet
will remain unchanged.
China, which had struggled with electricity shortages over the last six
years, increased its power price by 4.7 percent in July. This was to aid the
country's coal-fired power plants, which have suffered wide losses due to
surging coal prices.
More than 80 percent of all domestic power generation companies suffered
losses in the first seven months, according to statistics.
Official figures showed power coal prices rose by more than 80 yuan per
tonne over the past two years. The prices had gone up by 60 yuan since the start
of the year.
Prices at the coal market in Qinghuangdao, Hebei Province, a major supply
center, exceeded 1,065 yuan per tonne in July, up 115percent year-on-year.
Thermal coal use this year could surge 11.5 percent year on year to about
1.6 billion tonnes, indicating the possibility of tighter supply, China
Electricity Council said earlier.
According to State Grid Corporation of China, the nation's electricity
consumption is expected to reach 3,591 billion kwh in 2008, up 10.5 percent or
360 billion kwh year on year.
Stimulated by the news of a price hike, shares in the country's power
sector rose in Shanghai and Shenzhen trading on Tuesday.
Huadian Power International Corp gained 5.8 percent to close at4.35 yuan,
while Shenzhen Energy Group Co. rose by the daily 10 percent limit to close at
8.32 yuan.