Thermal plants in China suffer losses due to rising coal costs

Thermal power plants in central China lost more than 10 billion yuan last year due to continuous rise of coal prices.

The 2011 total losses of thermal power companies in central China — including the provinces of Hubei,Hunan,Henan,Jiangxi and Sichuan as well as Chongqing municipality — were 13.64 billion yuan,5.096 billion yuan more than 2010,according to a report released by the State Electricity Regulatory Commission’s central China bureau.

The report also said the area’s hydropower companies made a profit of 15.489 yuan in 2011,1.313 billion yuan less than the previous year.

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Officials with the bureau said,with the rise of coal prices,the fortunes of thermal power enterprises have been going downhill since 2008.

Although China raised the price of electricity three times last year,it failed to arrest their downward slide,state run Xinhua quoted officials as saying.