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China Generators Back Out of Direct Power Sales-Paper

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SHANGHAI, Apr. 21 -- China's pilot direct power sale plan has stalled, as power plants are unwilling to sell power for cheap just as demand and cost rise, the China Securities Journal said on Wednesday, quoting industry officials.
Beijing announced plans last year to open up to 20 percent of China's power market for direct trading between power generators and users, but so far only a few pilot deals have been approved.
&quot;It's not direct power sales any more, but discount power tariff,&quot; the paper quoted Xue Jing, director of the information department of the China Electricity Council, as saying.
Currently under the direct sale scheme, power generators and grid operators together give a discount in power tariffs to end users, usually in energy-intensive sectors such as aluminium smelting.
But power generators are no longer willing to grant discounted prices, as generating cost rose on higher coal prices, the paper said.
It would be difficult to push through the policy in the absence of a market pricing system, even if the China Electricity Council still plans to carry it out this year, industry officials quoted by the paper said. (Reporting by Rujun Shen and Jason Subler; Editing by Jacqueline Wong) 
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