Hunan determines the reasonable range of long-term coal transaction price at 480-630 yuan per ton

All municipal and state development and reform commissions, all relevant enterprises:

In order to implement the spirit of the National Development and Reform Commission’s “Notice on Further Improving the Coal Market Price Formation Mechanism” (Fakai Price [2022] No. 303) and other documents, guide the price of coal (domestic thermal coal, the same below) within a reasonable range Operation, ensure the safe and stable supply of energy in our province, and promote the coordinated and high-quality development of upstream and downstream coal and electricity. The relevant matters are hereby notified as follows:

First, clarify the reasonable range of coal prices. According to the principle that the price of self-produced coal in our province and the coal transferred to coal-fired power plants are similar, combined with the actual situation of coal production cost and self-produced coal type, quality, output, etc., determine the reasonable range of the medium and long-term transaction price of coal mining in our province It is 480-630 yuan per ton (4000 kcal, including tax). The upper limit of the reasonable range of coal spot price shall be determined as 945 yuan per ton (tax included) in accordance with the regulation that it shall not exceed 50% of the upper limit of the reasonable range of medium and long-term transaction prices. The reasonable price range of other calorific value coal shall be converted according to the calorific value ratio.

Second, strengthen coal price monitoring and cost investigation. Establish and improve the coal production and circulation cost investigation system and market price monitoring system, take into account factors such as changes in coal production costs and the development of the energy industry, promptly and fully listen to the opinions and suggestions of the industry and society, and evaluate and improve the reasonable range of coal prices in a timely manner.

Third, improve the coal and electricity price transmission mechanism. Encourage the reasonable setting of clauses linking the on-grid electricity price with the medium and long-term coal transaction price in the electricity medium and long-term transaction contracts, so as to effectively realize the transmission of coal and electricity prices.

Fourth, regulate the price behavior of operators. In principle, the duration of medium- and long-term coal contracts is one year or more. Both supply and demand parties are encouraged and supported to sign purchase and sale contracts with a longer term, and the sale price of coal transactions is kept within the reasonable range specified in this document. Operators must conduct self-examination and self-correction in accordance with the “Announcement of the National Development and Reform Commission” (No. 4 of 2022), and must not fabricate or spread information on price increases, hoarding them, or increase prices substantially without justifiable reasons or in a disguised form. Irregularities.

Fifth, strengthen market price supervision. The development and reform commissions of all cities and states should pay close attention to the coal market situation, and take all other necessary means and measures, including reminders, interviews, investigations, notification, and other laws and regulations stipulated in the “Price Law” when monitoring coal prices exceeding a reasonable range. Guide coal prices back to a reasonable range. And cooperate with the market supervision department, pay close attention to the competition status of the coal and electricity market, strengthen anti-monopoly supervision, promptly investigate and deal with price violations, publicly expose typical cases when necessary, and effectively maintain market price order.

This notice will be implemented from July 1, 2022 and will be valid for 5 years.

Hunan Provincial Development and Reform Commission

June 30, 2022