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BEIJING, Dec. 2 (Xinhuanet) -- Seven major
electricity producers in China have recently appealed for state intervention to
solve their acute coal shortages, which has gravely hampered normal electricity
production.
In the petition, filed to relevant departments of the central government, the seven enterprises asked these
departments to issue explicit directions on coal and electricity prices to avoid
a power supply crisis.
The petition noted that most power plants in central
and north China now face shortages of coal. Coal reserves in these power plants
have dropped below the warning level. Some plants even have been compelled to
shut down their generators.
According to the petition, filed by China Huadian
Group, China Huaneng (Chng) Enterprise Group and five other major power
producers, the shortage is spreading to more areas.
An official with China Huaneng Enterprise Group, who
asked not to be named, said electricity pricing is still subject to government
approval at present, while coal prices have already been permitted to float in
line with market demands.
"Coal prices have kept rising since last year. The
level of coal prices has reached such a stage that it's difficult for
powerplants to continue normal production without adjustments in eithercoal or
electricity prices," said the official.
According to the official, around 75 percent of
China's power supply comes from coal-fired power plants at present. Coal
accounts for 50 to 60 percent of power generation cost.
As the coal shortage has caused a drop in electricity
output, electricity supply in some areas of China has been rationed recently.
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