Zhongxin Finance, February 25th. On the 25th, the National Development and Reform Commission issued a notice on further improving the coal market price formation mechanism. The notice will be implemented from May 1, 2022, and the price of imported coal does not apply to the notice.

  The notice sets a reasonable range of medium and long-term transaction prices for coal mining in key areas. Among them, the reasonable price range of coal with a calorific value of 5,500 kcal in Shanxi is 370-570 yuan/ton, and that in Shaanxi is 320-520 yuan/ton.

(Image source: Official website of the National Development and Reform Commission)

Guide coal prices to operate within a reasonable range

  Coal prices are formed by the market.

The National Development and Reform Commission and relevant parties have comprehensively adopted measures such as supply and demand connection, reserve handling, import and export adjustment, and transportation coordination to promote coal prices within a reasonable range.

When coal prices rise significantly or are likely to rise significantly, according to Article 30 of the "Price Law" and other regulations, price intervention measures will be launched in a timely manner according to procedures to guide coal prices to return to a reasonable range; when coal prices fall excessively, comprehensive measures will be taken. Appropriate measures to guide the reasonable recovery of coal prices.

Improve coal and electricity price transmission mechanism

  The guiding coal and electricity prices are mainly formed through medium and long-term transactions.

When the medium and long-term transaction price of coal is operating within a reasonable range, coal-fired power generation enterprises can fully transmit changes in fuel costs through a market-oriented approach under the current mechanism, and encourage the reasonable setting of the on-grid electricity price in the medium and long-term electricity transaction contracts linked to the medium and long-term coal transaction price. terms, and effectively realize the transmission of coal and electricity prices.

Improve the coal price control mechanism

  (1) Improve the ability to adjust supply and demand in the coal market.

Further improve the coal production, supply, storage and sales system, ensure reasonable and sufficient coal production capacity, improve the coal medium and long-term contract system, further enhance the government’s dispatchable coal storage capacity, improve the reserve adjustment mechanism, purchase, store and release in a timely manner, and promote coal prices to operate within a reasonable range.

Enhance the supporting capacity of railway coal collection and distribution.

Establish and improve the coal demand-side response mechanism, and reasonably adjust coal consumption when necessary.

  (2) Strengthen the management of coal market expectations.

Improve the coal production and circulation cost investigation system and the market price monitoring system to provide support for the adjustment of coal prices and the evaluation and improvement of the reasonable range of coal prices.

Timely release coal market and price information, and strengthen behavior assessment and compliance review of coal price index.

When the coal price exceeds the reasonable range, the means and measures stipulated by the "Price Law" and other laws and regulations shall be fully used to guide the coal price to return to the reasonable range.

  (3) Strengthen the supervision of coal and electricity markets.

It is strictly forbidden to conduct improper administrative intervention on coal and electricity prices within a reasonable range, and it is strictly forbidden to give electricity price discounts to high-energy-consuming enterprises in violation of regulations.

Improve the industry credit system and strengthen the supervision over the performance of medium and long-term contracts for coal and electricity.

Pay close attention to the trend of speculative capital, strengthen the joint supervision of the futures and spot markets, and resolutely curb excessive capital speculation and malicious speculation.

Local development and reform departments should cooperate with market supervision departments, pay close attention to the state of competition in the coal and electricity markets, and strengthen anti-monopoly supervision; promptly investigate and deal with market entities’ fabrication and dissemination of price increase information, hoarding, price gouging, price collusion and other price violations; coal price intervention After the implementation of the measures, the illegal acts of not implementing price intervention measures will be seriously investigated and punished, and typical cases will be publicly exposed.

  This notice will be implemented from May 1, 2022.

The price of imported coal shall not be subject to the provisions of this notice.

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