Development and Reform Commission: The price of key coal contracts must not be disguised

The National Development and Reform Commission issued the “Notice of Accomplishing the Coordinating Work for Coal Production and Transportation in 2011” on the 12th, arranging a coalition work plan for all parties involved in coal production and transportation, and the total amount of inter-provincial coal blending in 2011 is estimated to be 932 million tons, An increase of 3%; at the same time require coal companies to maintain the price in 2010, not to increase prices.

According to the plan, the total amount of coal commencing in the country continues to maintain a slight growth, of which electricity coal shipments were 769 million tons, an increase of 5% year-on-year. The National Development and Reform Commission clearly stated in the notice that in the convergence of production, transportation and demand in 2011, the annual price of key coal power contracts will remain unchanged from the previous year, and prices may not be disguised in any form.

The National Development and Reform Commission said that the current task of stabilizing the general price level and managing inflation expectations is heavy. Coal and power companies must proceed from the overall perspective of maintaining economic development and strengthen corporate self-discipline; at the same time, they must clear the current coal production and sales process in all regions and departments. All types of fees and funds shall cancel charges and funds set up by local governments at all levels and relevant departments that are arbitrarily established, and shall integrate charges and funds of similar nature and set repeatedly to reduce the burden on coal companies. The notice pointed out that the total amount of coal supply and demand in 2011 is basically balanced, but due to structural contradictions and uncertainties, imbalances in supply and demand may still occur in some regions and at certain times.

In 2010, the Development and Reform Commission canceled the form of an on-site ordering meeting. The enterprises independently selected the appropriate method at a specified time and dispersedly conducted the connection, thereby ending the 16-year-old coal "ordering meeting" and "contract summary meeting" and were seen. As the beginning of the full marketization of coal prices. For this re-ordering meeting, the National Development and Reform Commission did not give clear reasons in the notice. It only pointed out that the direction of reform should be adhered to, and the market mechanism for autonomous convergence, negotiation, and ordering should continue to be promoted, and the establishment of the government’s macroeconomic regulation and market entities should be accelerated. Combined modern coal trading system. Actively encourage both sides of the coal supply and demand to sign long-term contracts, establish a long-term stable supply and demand relationship.