Official urges China’s power plants to invest in coal sector

BEIJING, April 9 (Xinhua) — China’s electricity regulator has advised major power companies to merge with or acquire coal producers and transporters to help stabilize costs and supplies.

Utilities could slow the expansion of their thermal-power capacity and instead invest in coal transport firms and mines, Zou Yiqiao, director of the price and financial supervision department of the State Electricity Regulatory Commission (SERC), was quoted as saying by Shanghai Securities News on Wednesday.


Zou suggested that the government would allow power costs to reflect coal prices when the timing was appropriate. A more rational relationship between coal and electricity prices would help ensure sustainable industry development and adequate power supply, which was critical for the economy and living standards, he said.

The government froze electricity prices to prevent rising coal costs from flowing through to end users, but soaring coal prices forced many power plants to run at a loss.

Xinhua