Coal prices have been approved by the State Council

Coal prices have passed the approval of the State Council

Chen Zongfa, director of the policy and legal affairs department of China Huadian Group, said on December 7 that the State Council leadership has already made clear instructions on the coal prices. The coal and electricity integration plan will focus on the needs of power generation companies and achieve a win-win situation for coal-fired power generation and industry. Coordinated development.

Chen Zongfa made the above statement at the fourth high-level forum of Chinese energy companies. He told reporters that Deputy Prime Minister Li Keqiang has recently issued instructions on the coal prices. Although it is still not clear whether the instructions were approved in principle or as an implementation plan, the general direction will be inclined to the coal price reform and marketization reform. The core is to establish The coal bridging mechanism converts the current key contract to a medium- to long-term contract with 3-5 years.

However, Chen Zongfa also pointed out that the power generation industry is complex and worried about the merger, and some companies even think that the harm from harmonization is greater than profits. He believes that most companies are mainly concerned about the lack of policies, their capacity is not guaranteed, coal prices have risen again, coal-fired electricity linkages have failed, the electricity market continues to be in a vicious state, and power companies that have just breathed in have returned to losses. “From the perspective of power generation companies, we only hope that coal supply and prices can remain stable, and we do not hope that the coal price will decline drastically, making it impossible for coal companies to go through,” said Chen Zongfa.

It is understood that at present, China's power generation companies still suffer serious losses, and the companies with better asset-liability ratios have all exceeded 100%. Despite slight improvements in 2012, there are some profits, but it is far from making up for historical losses. At the same time, the situation of enterprises in different regions is quite different. Among them, the on-grid tariffs in areas with high output in Shandong and Northeast China have not been able to increase, and losses have been particularly serious.

The data shows that China currently has about 750 million tons of key contract coal annually, of which electricity consumption accounts for 37%, which is about one-third, accounting for about one-fifth of China's total coal consumption. The large-scale state-owned power generation companies that have been included in the top 10 rankings of key contracts accounted for 78% of the total contract coal, of which the top five power generation groups accounted for 56%, or approximately 420 million tons.