Datang Intl H Regulatory News (DAT)

4 Jul 2006 07:00

Datang Intl Power Generation Co Ld04 July 2006 The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes norepresentation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any losshowsoever arising from or in reliance upon the whole or any part of the contents of this announcement. Datang International Power Generation Co., Ltd. (a sino-foreign joint stock limited company incorporated in the People's Republic of China) (Stock Code: 991) ADJUSTMENTS OF TARIFFS This announcement is made pursuant to Rule 13.09(1)(a) of the Rules Governing the Listing of Securities on The StockExchange of Hong Kong Limited. The Company announced the adjustments of tariffs of some of its power plants with effect from 30 June 2006 pursuant toa notice recently issued by the NDRC. This announcement is made pursuant to Rule 13.09(1)(a) of the Rules Governing the Listing of Securities on The StockExchange of Hong Kong Limited. Datang International Power Generation Co., Ltd. (the "Company") announced the adjustments of tariffs of some of itspower plants. Pursuant to a notice recently issued by the National Development and Reform Commission (the "NDRC"), theNDRC decided to adjust, with effect from 30 June 2006, the on-grid tariffs of the power plants in North China, SouthChina, Central China and East China as well as in the Northeast Power Grid and Northwest Power Grid. The main purpose of adjusting the on-grid tariffs is to resolve the conflict arising from the increase in coal prices,the impact of adjustments of railway transportation costs, and power plants' desulphurisation renovation costs thathave not been taken into consideration in setting the previous on-grid tariffs. Key aspects of the adjustment schemeinclude the following: 1. Coal-electricity price linkage mechanism will be implemented to appropriately raise on-grid tariffs In order to resolve the problem due the percentage of increase in average national coal prices in 2005 exceeding thepercentage of increase in on-grid tariffs and the impact of the increase in railway transportation costs on on-gridtariffs, the on-grid tariffs are to be appropriately raised. 2. On-grid tariffs will be increased to compensate increased costs due to investment in flue-gas desulphurisationfacilities In respect of the coal-fired generating units which have desulphurisation facilities put into operation before 2006 butfor which the on-grid tariffs have not taken into consideration the costs of desulphurisation, their on-grid tariffswill be increased by RMB15/MWh (including VAT) after the generating units have passed the examination by the provincialenvironmental protection departments and have obtained the approval from the relevant provincial pricing bureaus. For any new generating units of the Company which will commence operation in the future, upon the commencement ofoperation of the desulphurisation facilities, the on-grid tariffs will be increased by RMB15/MWh to compensatedesulphurisation costs after the generating units have passed the examination by the provincial environmentalprotection departments and have obtained the approval from the relevant provincial pricing bureaus. 3. New generating units will enjoy increased tariff standards The on-grid tariffs of the Company's new generating units, which will commence operation in the future will beincreased in accordance with the present tariff adjustment scheme issued by the NDRC. 4. On-grid tariffs of the generating units which have recently commenced operation in Shanxi Province and InnerMongolia Autonomous Region for the transmission of electricity to the Beijing-Tianjin-Tangshan Power Grid will beappropriately raised The on-grid tariffs of the generating units which have recently commenced operation in Shanxi Province and InnerMongolia Autonomous Region for the transmission of electricity to the Beijing-Tianjin-Tangshan Power Grid will beraised to RMB305/MWh and RMB304/MWh, respectively. 5. Excess generation tariffs will be abolished for those provinces where excess generation tariffs have beenpreviously adopted Excess generation tariffs will be abolished for the Gansu Power Grid where the Company's power plants are located. According to the above-mentioned approved tariff adjustment scheme, the on-grid tariffs of the Company's coal-firedpower plants will be adjusted as follows (with effect from 30 June 2006): On-grid Tariff Tariff Adjustment On-grid Tariff Remark before Adjustment (RMB/MWh) after Adjustment (RMB/MWh) (RMB/MWh)Dou He Power Plant Units 7-8 358.00 16.00 374.00 Inclusive of tariff increase of RMB15 for desulphurisation, to be implemented. Units 1-6 358.00 1.00 359.00 -Gao Jing Thermal Power Plant Units 3-6 363.00 25.50 388.50 Inclusive of tariff increase of RMB15 for desulphurisation, to be implemented. Others 363.00 10.50 373.50 -Zhang Jia Kou Power Plant Units 1, 3 and 4 358.00 1.00 359.00 - Unit 2 331.50 1.00 332.50 - Units 5-8 348.50 1.00 349.50 -Xia Hua Yuan 358.00 1.00 359.00 - Power PlantPanshan Power 330.00 10.20 340.20 -Tuoketuo Power 296.00 8.00 304.00 -Yungang Thermal 246.60 34.40 281.00 Inclusive of tariff increase of RMB15 for desulphurisation. PowerTangshan Thermal Power New units 345.00 1.00 346.00 - Old units 365.00 16.00 381.00 Inclusive of tariff increase of RMB15 for desulphurisation, to be implemented.Shentou Power 297.00 8.00 305.00 -Liancheng Power 227.00 8.80 235.80 -Wangtan Power 330.00 5.40 335.40 -Chaozhou Power 424.00 14.20 438.20 -Honghe Power 255.00 15.30 270.30 - By Order of the Board Datang International Power Generation Co., Ltd. Yang Hongming Company Secretary Beijing, the People's Republic of China, 3 July 2006 As at the date of this announcement, the Directors of the Company are: Zhai Ruoyu, Zhang Yi, Hu Shengmu, Fang Qinghai, Yang Hongming, Liu Haixia, Guan Tiangang, Su Tiegang, Ye Yonghui, TongYunshang, Xie Songlin*, Xu Daping*, Liu Chaoan*, Yu Changchun* and Xia Qing* * independent non-executive Directors This information is provided by RNS The company news service from the London Stock Exchange