Thanks to the reduction in fuel prices and the tariff adjustments and other factors, the thermal power industry in China has finally come out of large losses that had persisted for several years, some corporations managed achieve substantial growth. China Power Investment Corporation (CPIC), one of the five major power generation groups realized a total profit of 5.328 billion yuan last year, with the thermal power section increased its profits by 7.207 billion yuan. Other Power Groups like Huaneng and Huadian also achieved substantial profits.

General Manager Lu Qizhou of the China Power Investment Corporation (CPIC) told the corporate annual work conference that CPIC generated an operating revenue of 179.4 billion yuan in 2012, an increase of 13.76%, realizing a total profit of 5.328 billion yuan, the highest profit since the group was founded in 2002. Its asset-liability ratio dropped 1.23%. Its thermal power section turned round from a loss of 3.565 billion yuan in 2011 to a profit of 3.642 billion yuan in 2012, adding a profit of 7.207 billion yuan.

Deputy Director Huang Shao of the SERC Price and Financial Supervision Department pointed out that judging from the surface, the decline in fuel prices and electricity price adjustment have asserted a positive impact on the development trend of the thermal power industry in China. However, to ensure the economic benefits maintain steady growth, more attention should be focused on three key aspects, namely volume of power, fuel and cost. Take China Power Investment Corporation as an example. To maintain the positive momentum, CPIC will vigorously develop the electricity market, generate more power that brings in a profit, and to ensure their generation units achieve similar or higher than regional average utilization hours compared with units of similar types. At the same time, there is a need to stabilize the main channel of fuel supply, to strengthen cost control, and to reduce coal consumption by 2 grams per kWh.