More Chinese regions are cutting electricity prices to help out their embattled industries, which is likely to worsen the squeeze on profits at power suppliers. The richest coastal provinces have reduced their benchmark thermal power prices by about 10 percent from last year, according to a briefing by UBS Group AG this week. The bank expects power demand for coal, the country’s mainstay fuel, to fall by 4 percent in 2025.
China’s factories are contending with a weak economy at home, stemming from the country’s yearslong real estate crisis, and the threat of a trade war with the incoming Trump administration. At the same time, power supplies are plentiful, with fossil fuel and renewables output all at record levels. That’s creating room for regional governments to ease the cost burden on their local industries, albeit at the expense of energy suppliers. Jiangsu province, the industrial powerhouse that surrounds Shanghai, trimmed its annual power contracts by 8.9 percent to 412.5 yuan ($56) per megawatt hour at the end of last month. Anhui to the west has cut by 10 percent, according to SDIC Securities Co., while Guangdong has lopped off 16 percent. Lower rates will continue to shrink coal and gas profits, UBS analyst Ken Liao said Monday in Beijing. “If the property sector fails to recover, it will cap new installations.” he said. “Thermal power prices may drop 10 percent on average.” China’s industrial firms saw their profits fall in November for a fourth straight month, leaving them on track for the sharpest annual decline since records began in 2000. The crash in coal prices to near four-year lows has cut mining profits by over a fifth from the previous year. The utilities that produce electricity have fared better because of cheaper feedstock costs. But the drop in power prices mandated by local authorities will weigh on margins across the supply chain. And the changes afoot in the industry promise more pain to com
ECONOMY ENERGY CHINA POWER PRICES INDUSTRIES
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Marcos won’t use veto power, justifies cuts in 2025 national budgetPresident Ferdinand Marcos on Monday defended the ongoing deliberations for the 2025 national budget, amid concerns about budget cuts on key government
Read more »
HKMA Cuts Interest Rate, Citing Uncertainty Over Future CutsThe Hong Kong Monetary Authority (HKMA) lowered its base interest rate by 25 basis points to 4.75 percent, mirroring a cut by the US Federal Reserve. HKMA Chief Executive Eddie Yue emphasized the uncertain outlook for future rate cuts, citing US inflation and economic data. He also cautioned consumers about interest rate risks in making financial decisions.
Read more »
ERC Denies Meralco, Masinloc Power's Provisional Authority for Power Supply AgreementThe Energy Regulatory Commission (ERC) has denied a request from Manila Electric Co. (Meralco) and Masinloc Power Co. Ltd. (MPCL) for provisional authority approval of their power supply agreement. The ERC cited a lack of urgency, as the expected delivery date of the power supply is not until August 26, 2025.
Read more »
Trump's Return to Power: A Case of Pariah to Power PlayerFormer US President Donald Trump, once a pariah, is now enjoying a surge in popularity among the wealthy and influential. Tech CEOs, politicians, and media figures are eager to align themselves with Trump's administration, demonstrating a stark contrast to the resistance he faced during his first term. This shift suggests a prioritization of loyalty and access to power in Trump's second term.
Read more »
Philippine Competition Commission Approves $3.3 Billion Power DealThe Philippine Competition Commission (PCC) has approved a $3.3 billion deal involving the acquisition of power facilities and an LNG terminal by Meralco PowerGen Corp. (MGen), Aboitiz Power Corp.'s Therma Natgas Power Inc. (Therma), and San Miguel Global Power Holdings Corp. (San Miguel Global Power). The deal, which includes the acquisition of stakes in South Premiere Power Corp., Excellent Energy Resources Inc., Ilijan Primeline Industrial Estate Corp., and Linseed Field Corp., raised concerns about potential competition issues. To address these concerns, the companies submitted voluntary commitments to ensure a fair and competitive market.
Read more »
PacificLight Power to Build Singapore's Largest Hydrogen-Ready Power PlantPacificLight Power Pte Ltd. (PLP) has been granted permission by Singapore's Energy Market Authority (EMA) to construct a 600-megawatt hydrogen-ready combined cycle gas turbine (CCGT) facility on Jurong Island. This project, slated for completion in January 2029, will be the largest single H-class CCGT plant in Singapore and will feature a large-scale battery energy storage system (BESS) — a first for CCGT units in the country.
Read more »