The economic slowdown and lower power consumption have led to coal prices falling this year, which means it is a good time to carry out the new policy.

"The country's power demand in 2013 will grow slightly," said Wang.

"The discrepancy between coal and power will be gradually eased while oversupply might occur."

He also estimated that the annual growth rate of China's power demand during the years 2010 to 2020 will be around 7.5 percent.

According to JYD, up to 90 percent of power companies have signed medium- and long-term contracts with coal suppliers at average spot prices.

Dai said the reform is a trend, and more effective supervision of the industry is needed.

Coal takes up 70 percent of China's primary energy output and consumption and thermal coal is a major part of coal resources.

dujuan@chinadaily.com.cn