Huaneng Power International will from today raise tariffs by as much as 7.3 per cent to ease high fuel and transport costs as well as additional expenses to meet environmental protection requirements.
It will lift average on-grid tariffs of coal-fired power plant by 9 yuan per megawatt-hour (MWh) and up to 15 yuan per MWh on some plants for the installation of desulphurisation facilities.
Overall, its tariffs will be raised by 4 yuan to 29.2 yuan MWh, a 1 per cent to 7.29 per cent rise.
The increase, following a notice by the National Development and Reform Commission (NDRC), will be applicable to its power grids in provinces including Shandong, Guangdong and Jiangsu and cities such as Shanghai and Chongqing.
Huaneng said extra charges for desulphurisation would be subject to provincial environmental protection department examination and pricing bureau approval.
'The main purpose of adjusting the on-grid tariffs is to resolve the conflict arising from the increase of coal price and the desulphurisation renovation of power plants,' it said.
Beijing last year implemented a mechanism allowing power producers to pass on 70 per cent of cost rises when coal prices jumped more than 5 per cent in six months. The rest of the rise must be absorbed by the power firms.
The NDRC issued a circular in April allowing power plants to raise tariffs. Datang International Power Generation and Huadian Power International raised their tariffs to partly offset higher coal costs.
The central government said last year that tariff adjustments would be considered every six months but the NDRC held off such a review due in November despite coal price rises.