China’s state agency seeks to calm power supply fears as crunch bites
China’s all-powerful economic planning agency waded into the country’s power crunch on Wednesday, attempting to reassure residents and businesses in areas hardest hit by shortages that it has the coal use and supply situation under close watch.
The state planner, the National Development and Reform Commission (NDRC), said it has asked local governments to closely monitor coal use and stocks at power plants and to improve fulfilment of medium- and long-term contracts to supply thermal coal.
The move comes as electricity shortages continue to paralyse parts of the world’s no. 2 economy in various regions, particularly the northeast. A shortage of coal supplies, toughening emissions standards and strong demand from manufacturers have pushed coal prices to record highs, sparking widespread curbs on usage while dimming economic growth outlook.
