Electricity Control

Recently, the news of electricity control has attracted much attention, and many people have received text messages telling them to “save electricity”.

So what’s the main reason for this round of electricity control?
Industry analysis, the main reason for this round of blackouts, electricity control is the imbalance between supply and demand. On one hand, due to the national shortage of coal, high coal prices, coal electricity prices inverted influence, many provinces have a tight situation of power supply; On the other hand, demand for electricity has soared.

Coal prices are high, thermal power stations are losing money
On September 28, 2021, the National Bureau of Statistics released the main financial indicators of industrial enterprises above designated size in the country from January to August 2021.
In other words, electricity consumption rose by double digits in the January-August period, but the profits fell of power supply and heating companies, and the main expense was the cost of burning coal.
Lin Boqiang, director of the China Institute for Energy Policy Studies at Xiamen University, told Chinane.com that coal prices in China are at historic highs.

Thermal coal prices continue to rise, to the thermal power generation-based enterprises, greatly increased the cost. For this situation, some industry insiders said bluntly: “The price of coal is so high that thermal power plants have to lose money when they generate electricity. The more power they generate, the more money they lose, and they are naturally reluctant to generate electricity.”
It is an objective fact that the high price of coal has led to the reduction of electricity generation. Since the power rationing, it is true that many enterprises have been more or less affected by the electricity control.

Power outages will lead to increased production costs, more serious is greatly reduced productivity, longer lead times.New orders are now being taken with caution, with delivery times extending by at least a week or two. The impact is hard to gauge, and it is not clear how long the electricity control will last.