(Yicai Global) Nov. 29 -- Four of China's biggest power producers have submitted a report to Shaanxi provincial government asking for an increase in electricity prices because of higher coal costs. Rapid increases in coal prices have borne down on power generators, according to the China Business Journal.
Higher power prices may prove elusive because of China's policy of addressing overcapacity, reducing inventory, de-leveraging, lowering costs, and bolstering areas of weakness. Price hikes would also impact people and businesses. Coal producers are likely to come under pressure as thermal coal costs have gained sharply since August.
Coal producers are now in a tug-of-war with power producers, the fuel's largest consumers, Wang Qiuli, a market analyst at commodity research website Chem365.net, said earlier this month.
The large state power companies seeking price increases are China Huaneng Group, China Huadian Group , China Datang Corp., and China Guodian Corp.