Beijing is mulling its second power price increase in two months as widespread losses in the power generation sector worsens.
The price rises were flagged after the China Electricity Council, which represents power generators, said shortages in peak demand periods could amount to more than three per cent of the nation's installed generation capacity this year and double that by 2013.
Beijing plans to raise prices charged by power generators to distributors in Jiangxi, Hunan and Guizhou by 20 yuan (HK$23.88) per megawatt-hour, the official Shanghai Securities News reported, quoting unnamed people familiar with the situation. This is equivalent to increases of between 4.5 and 6 per cent.
It also plans to give a five yuan per megawatt-hour rise to Hubei and Henan, the report added, without giving a time frame. This equals increases of 1.1 per cent to 1.2 per cent.
An official at one of the Hong Kong-listed mainland power generators said the firm was informed about the proposed rises, although no official document has been released. Officials at the pricing department of the National Development and Reform Commission (NDRC) were unable to confirm the price rises.
The latest proposed rises follow a previous round of price increases in April, although the latter was never officially confirmed by Beijing.