China to cut surcharges on thermal power plants, paving way for price rise- document

China’s state planner will reduce surcharges paid by coal-fired power producers, paving the way for provincial authorities to raise prices charged to the grid operator, according to a document sent to regional officials and power producers and seen by Reuters.

The change is effective July 1, according to the document sent by the National Development and Reform Commission (NDRC), and will help utilities manage rising coal prices.

The NDRC did not immediately respond to a faxed request for comment.

The reduction of one surcharge by 25 percent and the elimination of another comes as power companies report losses as coal prices hit record highs.

Thermal coal futures prices rose more than 40 percent this year to a record high around 580 yuan ($84.90) per tonne on June 20.


Source: The Economic Times

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.