CEC Calls for Restriction of Coal Prices

Business Daily (Reporter Guo Yu Han) Yesterday, the China Electricity Council (hereinafter referred to as "CEC") released the report "Analysis and Forecast of the National Electricity Supply and Demand and Economic Operational Situation for 2010-2011". The China Electric Power Association, which repeatedly criticized thermal power companies, expressed its concern over the continuing strength of coal prices in 2011, and called for suppression of coal prices to follow suit and hype.

“In 2011, the overall coal price will remain high, and the risk of further increase will be high.” In view of this expectation, the CEC suggested that measures be taken to curb coal prices and to avoid conducting prices. Among them, CEC proposed to fully play the role of policy supervision and guidance, and suppress all kinds of follow-up and speculation factors in the rise of coal prices.

A power plant source gave an example to reporters, saying that despite the fact that the plant had coal, a key contract, the NDRC's limit order did not play a role. "Last year was the case, once enterprises had "led the lead" in raising prices, other coal companies were all brave. When the market coal price was more than 800 yuan/ton, the factory price was 800 yuan/ton, and the production cost was calculated. The more you lose."

The CEC also called for the implementation of coal-fired linkages to form a reasonable electricity pricing mechanism as soon as possible.