From Chinese Press

Coal trouble in cold weather

(China Daily)
Updated: 2010-12-23 07:55

Come winter and the demand for power rises disproportionately to supply. Some experts wrongly believe that the problem can be solved only by fixing power tariff according to market rules, says an article in Huaxi Metropolis Daily. Excerpts:

The rise in the demand for coal in winter has become a yearly phenomenon. Some experts have suggested electricity tariff should be raised to deal with power and coal shortage. Even the China Electricity Council, on behalf of power plants, has appealed to the National Development and Reform Commission to raise electricity tariff.

But the reason for shortage of coal every winter is not related to production. Rather, it is related to the difficulty in transporting coal to distant places in winter because of snow and sleet.

The situation can be improved by solving the problem of long-term transportation, not by increasing power tariff. The shortage of coal in winter has nothing to do with power tariff, which the experts claim is lower than the market price.

The most effective way to deal with the problem is for power plants to get coal from nearby places. And the authorities can help deal with the problem by reducing transportation costs.

Hence, it's not right for the experts to talk about raising electricity tariff. They should know that higher power tariff will make ordinary people's life more difficult.

(China Daily 12/23/2010 page9)