The controversial drive to privatise coal mines in Shanxi province is one of the culprits behind this winter's electricity shortages, a mainland newspaper reported yesterday.
The provinces of Henan, Hubei, Hunan, Jiangxi and Sichuan and the municipality of Chongqing were placed under rationed electricity supply last week.
However, when rationing was required even in Taiyuan, the capital of coal basket Shanxi, serious questions were raised about the electricity and coal industries.
According to the official Guangzhou Daily, the two biggest power plants in Taiyuan have stockpiles that are one-fifth of the normal level, and enough for just two days of electricity generation.
An official at Taiyuan No 2 Power Plant was quoted as saying that 'in the past two weeks, all operations managers are out in Datong [in Shanxi], Inner Mongolia and Yangquan [also in Shanxi] trying desperately to buy coal and transport coal back here'.
The article suggested the main reason for the shortage is the restructuring pushed forward by Shanxi's government last year. It means the majority of the province's coal mines are idle. In areas administered by Taiyuan, for example, just two or three out of 70 are in operation.
Under the restructuring, small mines have been shut, and privately owned mines must merge with state-owned companies in a bid to improve work safety. By the time the reform is completed, the number of mines will drop from 2,600 to 1,053.