China's central Hunan Province has decided to double the reward to coal miners for producing thermal coal, and raise power tariffs by 5 percent as an incentive for power plants, a report on China's central government's website said.
The province, which has started rationing power, said it would raise the reward on each tonne of thermal coal produced in the province to 40 yuan from 20 yuan previously.
Hunan aims at raising thermal coal stocks to more than 1.2 million tonnes by the end of July, from 930,000 tonnes currently, the report said.
The provincial government estimated it would spend 730 million yuan ($106.9m), out of a coal price adjustment fund, on the reward, and a subsidy of 35 yuan per tonne, to coal miners in the province from June to December.
The lack of coal, used for about 80 percent of China's power output, is pushing the country towards its worst summer power shortage since a crisis in 2004 that caused rolling blackouts across the country.
The world's second-largest electricity user is rationing power in at least 14 provinces, with estimated shortfalls near 30 gigawatts, or 4.2% of the country's installed generation capacity.
The Hunan provincial government also decided to raise power tariffs to 0.545 yuan per kwh, from previously 0.52 yuan per kwh previously. But it did not specify whether that was an on-grid power tariff.
Due to low water levels at hydropower dams, Hunan has also asked the province's coal-fired power plants to increase power generation.
By Rujun Shen, Reuters
