Since NDRC announced the national average sales price of electricity to rise by 2.5 cents/kwh starting from July 1, our reporter yesterday again learned from the head of a power generation enterprise that national on-grid electricity price will also be confirmed. It’s revealed that the national on-grid electricity price has completed calculation on the 27th, and it is to rise 1.7 cents/kwh. On-grid electricity prices for Beijing and Shanghai are the highest around the country, up to above 2 cents/kwh.
It is understood that in accordance with the management procedure, following NDRC’s electricity tariff rise, overall requirements on local on-grid electricity prices will be released. The local authorities through calculation, figure out the specific rising range and submit it to NDRC. Thus, after raising electricity sales price, on-grid electricity price rise is just a matter of procedure.
The above head told our reporter that on-grid electricity prices of all provinces are calculated in accordance with the average prices of standard coal from January to May submitted by local authorities to Beijing Zhongneng Electric Power Industry Fuel Company. However, he said that the current electrical coal price is 300 yuan/ton higher than the same period last year. If calculated in accordance with the coal-electricity tariff automatic mechanism, on-grid electricity price will be raised by 6 cents/kwh at least. "Now the 2-cent rise in on-grid electricity price is only equivalent to 50 yuan/ton rise in electrical coal price.” he said.
"Although on-grid electricity price hike has temporarily relieved the business difficulties of power generation enterprises, it hasn’t fundamentally solved the problem”, said the head of a power generation company, adding that coal price will definitely continue to rise in terms of the long-term supply and demand relations.
Although power generation businesses and coal businesses sign key contracts on coal supply every year, the fulfillment rate of contracts has fallen continuously due to the unceasing climbing electric coal price. It’s learned from Guodian Group that the fulfillment rate of contracts on electrical coal supply for Heze Power Plant of Guodian Group is less than 60%, so do other thermal power plants; over 70% of power plants of Guodian Group are on the verge of suffering losses, and many plants are going to be hit by capital shortage.
Another head of a power generation company revealed that the fulfillment rate of contracts on electrical coal supply this year has dropped by 20%-30% than last year, which means power plants must purchase electrical coal in the market. In light of the situation, currently there are many power generation groups involved in the coal business, such as the eastern coal mine area of Wujianfang Coal Mine held by Datang Power, and Pingmei Group held by Guodian Group.