On July 2nd, the State Development and Reform Commission decided to increase the online electricity price of the power plants. Both China Yangtez Power CO., LTD and HuaDian Power International CO., LTD announced to raise their online electricity price. According to the analyst, the increase of the online electricity price will exert different impacts towards the power plants due to different rate of price increase of online electricity and local conditions.

Around the whole country, the average price of online electricity increase of about 1.7 cents, increase the rate of 5% (tax). Since the power industry has been suffered the deficits from January to May this year, some power plants have the capital problems at present. The adjustment of the online electricity price could release the capital pressures of the power plants and guarantee the power supply in summer. However, the situation of the profit declining couldn’t be improved.

China Yangtez Power CO., LTD announced today that the online electricity price of ten provinces, including Shanghai, HuBei, and Guangdong will be increased. The highest rate of price increase is in GuangDong Province, from 0.2988 yuan to 0.3111yuan.

HuaDian Power International CO., LTD announced also today that it will increase the online electricity price by almost 4.77%, in Shan Dong, SiChuan, NingXia, AnHui and HeNan provinces. The company expressed that the price adjustment will ease the cost pressures of the competitive power plants. However, the small-scale power plants still face greater cost pressures, because the rate increase is limited,.

Among all the regions, YuNan province is the highest rate of price increase region. And the east part of the Inner Mongolia is the lowest, due to the different rate of coal price increase for different region.(China Securities Journal/ LI Yang dan Xing Po ying)