According to industry insiders, a plan to unify electricity and coal prices has already been approved by the State Council, China Security Journal reported on Thursday.

After the unification, the key contract for coal will be replaced by mid- and long-term contracts.

However, electricity prices will not have a real-time linkage with coal prices, something desired by power generation companies.

The linkage mechanism will be improved on a continuing basis. When prices fluctuate severely, interim measures will be taken, according to the plan.

The meetings for ordering coal in 2013 have already been held. The coal companies in Shanxi have signed contracts for 2013 with the buyers based on key contracts in 2012 and market transaction volumes. Coal prices rose but the actual increases are different between different coal companies, with the highest increase at 35 yuan a ton.

The increased coal prices are very close to the latest market prices.

The national generating capacity in November increased 7.41 percent year-on-year, the highest growth this year, statistics from the State Electricity Regulation Commission show.

The available days for using the coal inventory in the major power generation enterprises fell five days at the end of November from the end of October. This may encourage the companies to purchase more coal and therefore ease any pressure on a decline in coal prices.

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