The mainland's coal-fired power generation industry faces a double whammy of over-capacity and rising competition as a result of gradual power price liberalisation, even though profitability has been propped up by sinking coal prices in the past few years. Analysts say power producers will have to exercise restraint on new capacity expansion, or else risk seeing utilisation fall below last year's 15-year low and eat into profit margins, especially if coal prices find a bottom after four years of precipitous falls.