At the "2012 Energy Summit and the Fourth High-level Forum on Chinese Energy Enterprises," Chen Zhongfa, Director of the Policy and Legal Affairs Department at China Huadian Corporation, highlighted that while the long-standing tension between coal and electricity has eased, the country's top five thermal power plants still faced significant losses—up to 47% as of September.
Chen noted that the National Development and Reform Commission and the Energy Bureau have been working on revising key coal contracts and promoting market-driven pricing reforms for coal. A new plan is expected to be rolled out soon, aiming to better align coal and electricity pricing mechanisms.
He explained that in 2012, coal prices dropped due to increased production, higher imports, and lower demand, which helped ease the coal-electricity conflict. However, despite this, thermal power companies continued to struggle with heavy losses.
According to Chen, the government needs to introduce supportive policies quickly, especially after coal price reforms are fully implemented. He pointed out that while linking coal and electricity prices can promote fair competition among power generators and improve evaluation systems, the drawbacks outweigh the benefits. Regions like Northeast China and Shandong, where many key coal contracts exist, are particularly affected.
To address these challenges, Chen recommended establishing a real-time linkage mechanism between coal prices, on-grid tariffs, and sales tariffs. This would help eliminate some of the outdated policies that have burdened power companies. In areas like the Northeast and Shandong, where the impact is most severe, electricity prices should be adjusted accordingly.
He also suggested that if the coal-electricity linkage is to be fully implemented, the accumulated debt from the 2004–2011 period—approximately 7 to 9 cents per kilowatt-hour—should be addressed to reduce past losses. Additionally, coal prices in regions like Yunnan and Xinjiang are expected to rise, and on-grid tariffs should be adjusted appropriately.
Beyond pricing, Chen called for cleaning up unnecessary fees and charges related to coal, reducing transportation and logistics costs, accelerating the construction of coal emergency reserves, and improving the supervision of coal markets and power capacity allocation. These steps, he said, are essential for ensuring a more stable and efficient energy system in the future.DIN934 hexagon nuts,DIN985 Nylon Nut, Zinc Nylon Nut, Zinc Asmnylon Nut
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