Power producers to get 12.7b yuan relief

PUBLISHED : Saturday, 21 February, 2009, 12:00am
UPDATED : Saturday, 21 February, 2009, 12:00am

Beijing has approved the disbursement of 12.67 billion yuan (HK$14.37 billion) to relieve mainland power firms of losses from damage caused by last year's snowstorms and earthquakes, state media reported.

The bulk of the fund had been allocated to the country's two regional monopoly power distribution companies, the China Securities Journal reported, quoting unnamed sources at the State-owned Assets and Supervision and Administration Commission.

State Grid Corp of China will receive 8.73 billion yuan, while China Southern Power Grid will get 3.34 billion yuan.

Power generation companies will only get relatively modest amounts, with 250 million yuan for China Huaneng Group, the parent of listed Huaneng Power International; 250 million yuan for China Huadian Group, the parent of listed Huadian Power International; and 100 million yuan for China Datang Group, the parent of listed Datang International Power Generation.

The listed firms will only see minor benefits.

Huaneng's spokesman said only one of its plants would benefit from the financial assistance. It has a 49 per cent stake in a Sichuan hydropower plant, while its parent company owns 51 per cent.

Huadian's spokesman said some of its plants were in quake-hit areas, but added it was up to the parent to decide on allocations.

In November last year, Beijing said it had allocated 19.6 billion yuan to help state-owned companies on post-disaster rebuilding.

The latest report said the government had not allotted any cash injection for power firms this year other than the 12.67 billion yuan, implying they would not receive compensation for losses from high coal costs and state control on power prices.