The Way to Relieve Tense Supply Situation of Power and Coal in China

This paper introduces the situation of coal and power production, the tense supply of power coal and deteriorated coal quality in 2004, analyzes the causes of tense supply of power and coal, one of which is due to the government regulated power tariff against rapid escalation of coal price that power enterprises can hardly afford. It also presents some policy proposals to relieve the contradiction between coal and power, including to intensify macroscopic regulation between industries and regions, solve the problem of power coal transportation and reduction or exemption of tax on coal industry and circulation links, through secondary distribution to regulate profit difference among industries.