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Power plants see 13b yuan loss in C China
By Liu Zheng ( chinadaily.com.cn )
Updated: 2012-05-14

The Center China Bureau of State Electricity Regulatory Commission recently released a report stating that in 2011, thermal power enterprises in Central China experienced widespread losses totaling 13.64 billion yuan ($2.16 billion).

The report covers six provinces and municipality of Hubei, Hunan, Henan, Jiangxi, Sichuan and Chongqing. Four of the five State-owned power generation groups saw a deficit in the region, Economic Information Daily reported Monday.

In 2011, the six provinces' power plants saw a loss of 8.3 billion yuan, up 6.45 billion yuan from a year earlier.

Thermal power enterprises witnessed a loss of 13.64 billion yuan, 5.096 billion yuan higher than the previous year. Hydropower plants earned a total profit of 15.49 billion yuan with a year-on-year decrease of 1.313 billion yuan.

An officer from the Center China Bureau of State Electricity Regulatory Commission claimed that the thermal power companies' recession started in 2008. as the price of coal has continued rising in recent years, so the operating conditions of those enterprises went from bad to worse.

Although the on-grid power tariff was increased three times in the last year, the report said that it was still unable to offset the price hike of raw materials, which is the main reason leading to the widespread loss of coal-fired power plant.

Among the five national power generation groups, only China Huaneng Group has maintained a stable profit.

 
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