The State Grid Corp of China warned this week that it would shut down some generators over the summer, reducing output by as much as 40 gigawatts, according to Global Times.
Power companies are struggling as coal prices have risen 75 per cent since 2007, while electricity prices have risen only 15 per cent.
China’s five biggest coal power businesses have posted combined losses of $9.23 billion since 2008.
Energy analyst Li Chaolin tells Global Times: “Many coal plants have shut down their generators because the more they produce, the bigger the losses they will suffer.”
An editorial in the Oriental Times complains: “The coal industry is in a market economy, but the power industry is still in a planned economy.”