Power companies operating in Hubei, Hunan, Henan, Jiangxi, Sichuan and Chongqing suffered a net loss of 8.3 billion yuan ($1.3 billion) in 2011, up from a deficit of 6.4 billion yuan a year earlier, according to the State Electricity Regulatory Commission (SERC).

The profitability of the energy industry has been driven down by huge losses from coal-fired power producers as prices for coal continue to surge, the SERC explained. Coal-fired power stations in the regions mentioned above experienced a net loss of 13.6 billion yuan in 2011, up 5.1 billion yuan compared with 2010. Meanwhile, hydro power stations in these regions saw a net profit of 15.5 billion yuan in 2011.

Source:chinesestock