CR Power predicts tariff increase

A Chinese operator of coal-fired power plants, China Resources Power Holdings, predicts that the government will raise tariffs again this year now that inflation has eased, the South China Morning Post reported. But the company said the next increase would probably be similar to two recent increases that were not enough to cover the surging cost of coal. The company said those increases cover only up to US$11 per ton of coal, but average coal prices have surged by almost four times that amount. China’s consumer inflation eased to a 10-month low of 6.3% in July. After a two-year freeze, China raised tariffs charged by power producers to distributors by an average of 5.1% on July 1 and 5.3% on August 20.