(Yicai Global) Oct. 27 -- Shares in Huaneng Power International surged by the exchange-imposed limit today despite the Chinese electrical power generator logging a CNY3.5 billion (USD548.2 million) loss in the third quarter due to increased coal prices, as regulatory efforts to ease pressure on power suppliers boost investor confidence.

Huaneng’s Shanghai stock [SHA:600011] jumped 10 percent and was trading at CNY7.57 (USD1.19) at 2p.m. China time. Its Hong Kong shares [HKG:0902] were trading up 7.12 percent at HKD3.91 (USD0.50).

Revenue was up 16.8 percent in the three months ended Sept. 30 year on year to CNY49.9 billion (USD7.8 billion), according to the Beijing-based company’s latest financial report.

Despite a 70 percent increase in the price of coal to CNY1,200 (USD186) per ton, electricity prices remained stable at CNY417.79 (USD65.88) in the first three quarters, said Huaneng, 80 percent of whose 200,000 megawatts capacity is coal-generated. As a result, almost all thermal power plants in the country were working at a loss and many cut production or shut down.

In a bid to ease their pressure, on Oct. 15 the government relaxed the floating range for coal-generated electricity to 20 percent above the base tariff from 10 percent for business users. Power rates to high-energy consuming businesses can be raised without restriction. Electricity prices for residents and agriculture, though, will not change.

And last week, regulators stepped in to curb speculation in the coal market and stabilize the production costs of downstream industries, resulting in a fall in the price of coal.

Editor: Kim Taylor