Singapore (Platts)--4Apr2011/518 am EDT/918 GMT

China's top economic planner, the National Development and Reform Commission, has urged local authorities to ensure there is adequate supply of thermal coal so that prices remain stable from 2010 levels.

"Local authorities and enterprises should better adjust the balance between production, delivery and demand of thermal coal in the market and closely monitor prices to ensure thermal coal contracts this year are concluded at the same price level with 2010," said a statement by the NDRC on its website Saturday.

Beijing is also prohibiting any move to "segment markets and limit any coal to be moved out of any province," said the statement.

The NDRC will also carry out inspections and act against any organization that "arbitrarily" raises prices.

This article continues below...

Platts coal is now on Twitter
	Follow @PlattsCoal on Twitter to see breaking coal news, price assessments and analysis, as well as links to exclusive Platts coal stories and new media content.

The country's top five electricity generators suffered sharp losses due to steep price spikes in thermal coal last year.

The nation's top five power producers -- Huaneng Power International Inc., Datang Corp., Guodian Corp., Huadian Power International Corp. and China Power Investment Corp. -- saw a huge dent in their bottomlines of up to 50% by end-October because of runaway coal prices, said an official from the China Electricity Council in December.

The policy of a liberalized market for coal and government-set electricity prices has led to a dislocation between feedstock and electricity prices and often the power generators have to bear the huge price difference, the CEC said.

The price of Qinhuangdao coal has risen over 150% since 2003, whereas electricity retail prices have only increased 32% during the same period, the council said.

--Calvin Lee, calvin_lee@platts.com