“A growing number of Chinese regions are cutting power prices to help their struggling industries, which is likely to hurt the profits of power providers.”, — write: epravda.com.ua
A growing number of Chinese regions are cutting power prices to help their struggling industries, which is likely to hurt the profits of power providers. Bloomberg writes about it. The wealthiest coastal provinces have reduced their base heat prices by around 10% compared to last year. Demand for coal, the country’s main fuel, is expected to fall by 4% in 2025. Chinese factories are struggling with a weak economy at home, the result of a years-long housing crisis and the threat of a trade war with the new Trump administration.Advertisement: At the same time, energy resources are plentiful and production of fossil fuels and renewables has reached record levels. This creates opportunities for regional governments to ease the financial burden on local industry, albeit at the expense of energy suppliers. Jiangsu province, an industrial hub surrounding Shanghai, cut its annual electricity contracts by 8.9% to 412.5 yuan ($56) per megawatt hour late last month. According to SDIC Securities Co., Anhui province in the west shed 10% and Guangdong 16%. Profits at Chinese industrial companies fell for a fourth straight month in November, marking the steepest annual decline since records began in 2000. A drop in coal prices to near four-year lows has cut mining profits by more than a fifth compared to 2023.Advertisement: Utilities that generate electricity are said to be doing better thanks to cheaper raw materials.