Shanxi low price high coal price game five major group blood transfusion difficulty

Countries such as Guangxi, Jiangxi, Guizhou and Henan have successively introduced policies to help power generation companies to ease their operational difficulties, and Shanxi, a province with a large number of thermal power losses, has “not moved”.

The serious losses of 13 power generation enterprises in the south-central part of Shanxi Province have been reported to Shanxi Province through various channels. There are currently no specific measures in Shanxi Province.

High coal prices and low electricity prices are a favorable situation for Shanxi's economy, where coal is the mainstay of the economy and high-energy-consuming industries such as steel, metallurgy, glass, and cement are the mainstays. Therefore, the contradiction between the price of coal and the price of electricity is particularly fierce in Shanxi, and behind this lies the fact that most of the game between the power companies of the central enterprises and Shanxi Province is based on the interests of coal.

Coal Price and Fees Together Shanxi's various charges imposed on coal have also pushed up the power plant's fuel to become inland and sit on coal seas. Shanxi's important position in the national coal market is difficult to shake.

Although Inner Mongolia's annual coal output has surpassed that of Shanxi and reached the top in the country, due to the lack of a coal-passage construction in Shanxi, Inner Mongolia's coal Sinotrans relies heavily on road transport. The bottleneck of railway transportation capacity has always constrained the increase in coal production and shipments.

The cost of road transportation is even higher. Therefore, even if the coal quality is equivalent, considering the cost of freight, the price of coal in Inner Mongolia must be cheaper than Shanxi to be competitive.

"50 bucks a ton of 5,000 kcal coal can also be purchased, but all in the mountains, you can not transport." Shanxi coal industry insiders told this reporter.

The coal transportation railway represented by the Daqin Line is a major advantage of the Shanxi coal industry. It can use high coal prices and low freight rates to sell coal to areas with high coal price tolerance. Although this also pushed up coal prices in Shanxi Province, it was favorable to the overall economic development in Shanxi.

According to the statistics from the Shanxi Provincial Bureau of Statistics, from January to October this year, Shanxi's industrial enterprises above designated size realized an added value of 476.38 billion yuan, of which the coal and coke industries each realized an added value of 279.21 billion yuan, accounting for 58.61% of the total.

Power generation companies can hardly imagine how difficult it is to operate in such an environment.

The "Summary of Survey of Coal-fired Units in Shanxi Province's Unified Units" shows that from June to September this year, the standard coal price for the Shanxi Tongyun Unit has reached RMB 708.82 per ton. If you remove the coal-fired unit, the standard coal price has reached 781.51/ton. From January to October, in the central and southern regions of Shanxi Province where the price of thermal coal was higher, the average price of coal to enter the plant exceeded 816 yuan/ton.

In addition to rising coal prices, Shanxi's various fees imposed on coal have also pushed up fuel costs for power plants.

Shanxi's power generation enterprises are not allowed to buy coal directly from local coal mines. Instead, they must go through the Shanxi Coal Transportation and Marketing Group (hereinafter referred to as “Coal Transportation Company”). The coal transportation company earns the difference from the coal mining company and also imposes multiple fees. Due to the location of the mine is different. According to data provided to reporters by a Shanxi power plant source, these costs include the management fee for coal: 5.2 yuan -27.04 yuan/ton; land sales fee: 6-52 yuan/ton; information fee: 0.2 yuan/ton; transaction fee: 1 yuan/ton. In addition, the power plant also has to bear the sustainable development of coal for RMB 46 per ton**. Only by paying the above fees can the power plant obtain complete formalities.

"Coal transport companies are stationed in each power plant, and there are no procedures to allow the coal." The plant said.

In 2010, the coal transportation company realized a sales profit of 4.5 billion yuan. In the first half of this year, its sales profit was 2.7 billion yuan. According to the plan of the coal transportation company, it plans to achieve a sales profit of 5.5 billion yuan this year and strive for 6 billion yuan. From January to October this year, the loss of 13 power plants in central and southern Shanxi reached 3.289 billion yuan.

About 75% of the central enterprises' capital injections in Shanxi's power generation capacity are among the top five power generation groups. This is equivalent to the top five power generation groups sticking money to Shanxi for power supply. “It is difficult for the country to raise power prices uniformly. This we can understand.” a Shanxi power generation company official told this newspaper. The reporter said, "But there are some policies in Shanxi Province."

In fact, since September of this year, Guangxi has raised the price of electricity for large industrial and commercial users, Jiangxi has raised the price of electricity for restricted and eliminated production capacity, and Guizhou has granted financial subsidies for power generation companies. The difference in Shanxi is that although the losses of thermal power plants in the province are serious, the problem of power shortage is not yet prominent.

According to the Shanxi Provincial Electric Power Industry Association, the installed capacity of electric power in Shanxi Province exceeds 46 million kilowatts, and the thermal power unit accounts for 97%. Among them, the installed capacity of Shanxi Power Grid is about 33 million kilowatts, while Shanxi's energy load is usually about 18 million kilowatts, and the peak power consumption is up to 22 million to 23 million kilowatts. This means that Shanxi's power installation has a certain degree of affluence. Only during the peak period of electricity consumption, the problem of power shortage can be highlighted.

"Now that a power plant can't afford coal of good quality, it looks like it has a lot of installed capacity, but with 22 million kilowatts of electricity load is very strenuous." Shanxi Electric Power Industry insiders told this reporter: "There are some downtimes in the heating season. The crew of the unit was revived and the problem of electricity shortage in Shanxi was covered again."

More importantly, about 75% of the power generation installed capacity in Shanxi belongs to the five major power generation groups. The rest is the participation or control of local energy companies. Therefore, if the power plants of the five major power generation groups can generate electricity in Shanxi, it would be equivalent to the top five power generation groups affixing money to power supply in Shanxi Province, which has created a low electricity price advantage for the development of high-energy-consuming industries in Shanxi Province.

According to statistics from the Shanxi Provincial Bureau of Statistics, in 2010, the production of industrial products in Shanxi Province grew rapidly. They were alumina, cement, raw coal, steel, and flat glass. These products were large consumers of electricity.

If the electricity price is raised, the equivalent of local revenue in Shanxi will be transferred to the central SOEs through electricity prices. Instead of increasing electricity prices, although local power plants in Shanxi Province are also in a state of overall loss, some of them are integrated by coal and electricity, and the situation is slightly better. The other part has sacrificed for the “big picture” of the Shanxi economy.

“We think about the problems in the province, but the province thinks that you are all large-scale central enterprises that let Beijing’s leaders invest in you.” A Shanxi Power plant leader of the Big Five power generation group told this reporter: “But the group gave us blood, we I can't stop myself. In a few years, the group didn't want to invest again."

It is learned that of the five major power generation groups in Shanxi, only the Taiyuan No. 1 thermal power plant has received support from the Guodian Group and still maintains a relatively high level of power generation. The rest of the power plants have been shut down due to lack of funds.

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