NDRC may raise power tariffs by 0.025 yuan/KWH -state paper
* Considers capping spot coal prices at 800 yuan/tonne
* 2012 coal contract price may be allowed to rise 5-7 pct -trade
* Cap on spot prices to hit exporters, pressure intl prices (Adds details, background, trade and analyst's comments)
By Fayen Wong
SHANGHAI, Nov 30 (Reuters) - China may soon raise power tariffs by 0.025 yuan per kilowatt hour to prevent widespread shortages over winter and is also considering capping benchmark spot coal prices at 800 yuan ($130) a tonne in a move to thwart a potential coal price rally, a state newspaper said on Wednesday.
The China Securities Journal said the window of opportunity for the government to raise power tariffs was "drawing closer" as inflation has eased from recent peaks, adding a hike was necessary to help power producers, who have been losing money on thermal generation.
In a sign that a power price hike was imminent, several state-run newspapers have begun to speculate about a possible price increase.
A move by China, the world's No. 1 coal consuming nation, to effectively cap coal prices will hurt domestic players but benefit independent power producers, such as Huaneng, Datang and Huadian.
In a oversupplied Asia Pacific market where miners are already struggling to find homes for their cargoes, a price cap would also force overseas sellers to cut prices to make their coal competitive in China.
"In the past, tariff hikes were often followed by coal price increments, offsetting the effect of the former," said Pierre Lau, a power analyst at Citigroup said in a report.
"If coal prices are not regulated, the forthcoming tariff hike might also lead to higher coal prices, which would make the hike insufficient to mitigate power plants' cost pressure."
To help miners deal with rising production costs, which have increased some 8-10 percent in the past year, Beijing may allow 2012 contract prices to rise by 5-7 percent, said a second trader source.
"Mining costs are rising and the gap between spot and contract prices has widened to around 300 yuan. If the government was to freeze contract prices again next year, producers could cut back on supplies," said a trader.
Spot coal prices in China were hovering at around 850 yuan on the government-backed index, but traders said demand was poor and actual transactions were priced some 20 yuan lower.
The National Development and Reform Commission has met with key coal companies earlier this month to discuss prices, said a source linked to one the top producers.
The paper did not say when a price rise would be imposed, but it cited unidentified industry sources as saying any increase may extend to residential users and affect more provinces than in the past.
The price increase in June was limited to industrial users in 15 provinces. Industry observers have said at the time that Beijing would need to raise power tariffs again, especially in coastal areas to prevent further outages.