China coal-fired power companies on the verge of bankruptcy petition Beijing to raise electricity prices
- The Beijing Electric Power Industry Association has asked authorities for permission to raise electricity rates as coal prices skyrocket
- Petition follows a letter last month from 11 coal-fired power companies within the Beijing-Tianjin-Tangshan power grid asking for relief
The Beijing Electric Power Industry Association has joined 11 coal-fired power companies in petitioning authorities to raise electricity rates to avoid bankruptcy amid surging coal prices.
But last year, the National Development and Reform Commission, the country’s top economic planning agency, prohibited all rate rises.
The Beijing Electric Power Industry Association said this week it had sent a letter to the Beijing Municipal Commission of Urban Management petitioning for increased rates. Five member companies had incurred losses in the first seven months of the year, ranging from 20 million yuan (US$3.1 million) to 192 million yuan, the association told the South China Morning Post.
The petition echoed a letter sent by 11 coal-fired power companies within the Beijing-Tianjin-Tangshan power grid last month, which said they were losing money and were on the verge of bankruptcy due to steep increases in coal prices.