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Pending electricity price adjustment to benefit coal-fired power generators
Thursday, November 19, 2009 4:55 AM


BEIJING, Nov. 19, 2009 (Xinhua News Agency) -- China's pending electricity price adjustment is likely to benefit over 50 percent of listed coal fired power generators, according to a report by the research department of China Securities Journal.

Market hearsay goes that China is about to raise the on-grid electricity price in the middle and western regions and cut that in the eastern region.

Fifteen of the 27 coal-fired power generators listed on Chinese A-share market are expected to benefit from the price adjustment, including SDIC Huajing Power Holdings (600886.SH), a leading national power generator targeting mainly the western and middle regions, and 14 local power generators based in the middle and western regions.

The power grids, which have the dual function of producing and transmitting electricity, will benefit from the price adjustment.

Of the listed power grids, the proportion of self-generated electricity in the overall transmission amount is 75 percent at Sichuan Mingxing Electric Power (600101.SH), 69 percent at Sichuan Guagnan AAA Public (600979.SH), 47 percent at Guangxi Guidong Electric Power (600310.SH) and 40 to 50 percent at Chongqing Three Gorges Water Conservancy and Electric Power (6000116.SH), according to their annual reports for 2008.

(Source: iStockAnalyst )


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