Datang International Power Generation, the second largest Hong Kong-listed mainland electricity producer, reported a 14 percent increase in net profit to 1.27 billion yuan for the first half, boosted by new capacity and hiked tariffs, The Standard reported. While the company's power output rose 18 percent to 41.3 million megawatt-hours during the first half, the average tariff climbed by 16.86 yuan per megawatt-hour. "Implementation of the fuel tariff pass-through mechanism has already started," quoted chairman Zhai Ruoyu as saying. "We expect further business development and a stable increase in profitability for the second half this year." But Zhai warned that operating results for the rest of 2006 will be impacted by high fuel prices, higher requirements for environmental protection, and more new generation units coming on stream, which would result in a decline in average utilization hours. While the company's power output rose 18 percent to 41.3 million megawatt-hours during the first half, the average tariff climbed by 16.86 yuan per megawatt-hour.