It is reported that the National Development and Reform Commission (NDRC) on Tuesday (September 14) has consulted the five largest power generation groups in the country on the tariff adjustment plan. From October, electricity prices in seven provinces of Hebei, Shandong, Shanxi, Shaanxi, Qinghai, Gansu and Hainan are likely to increase.
This plan needs to be decided by the State Council. Reuters reported that the plan proposes that the on-grid tariffs for thermal power units in seven provinces will be raised by RMB 15-25 per ***/MWh, with an average rate of 6.2%; while for all natural gas generators, the electricity price will be increased by RMB 30 per megawatt-hour. .
Citi reported that if the plan is implemented, Huadian Power is expected to be the biggest beneficiary, and its 51% installed capacity can be adjusted up; followed by Datang Power 40%, Huaneng Power's 29% and China Resources Power's 11%.
According to reports, the China Electric Power Enterprise Federation (CEC) issued an analysis and forecast report of the national electricity supply and demand and economic operation situation released on July 26, claiming that the installed power generation capacity in the first half of the year was close to 900 million kilowatts, but the province’s profits were extremely unevenly distributed. The losses in all the provinces in the central region exceeded 50%. The CEC therefore suggested that the coal and electricity linkage mechanism should be completed as soon as possible, and the implementation plan for coal-fired electricity linkage prices should be proposed in different regions.