Recently, news about power cuts in many places across the country dominated the screen, and individual home appliance brands even used this as an excuse to raise prices for their products. Distributors who were a little dizzy by the price jump of home appliances are at a loss at this time, worrying that the price of home appliances will really increase again because of this.
“Home appliance people” will give everyone a reassurance about this. Electricity rationing will not have a big impact on the price of home appliances. Electricity rationing is mainly aimed at high energy-consuming enterprises, and the time period will be concentrated at the end of the year, and the duration will not be too long. In addition, the “home appliance people” chatted with everyone, why should the electricity be cut? What is the underlying purpose of power rationing?
Under the pressure of “dual control” of energy consumption, many provinces have cut off electricity
The main reason for this multi-province power rationing is that the “dual control” energy consumption exceeds the standard. Dual control of energy consumption mainly refers to the dual control of total energy consumption and intensity. In August, the National Development and Reform Commission lit a red light for the “dual control” of energy consumption in 9 regions across the country, focusing on 9 provinces including Qinghai, Ningxia, Guangxi, Guangdong, Fujian, Xinjiang, Yunnan, Shaanxi, and Jiangsu!
After the release of the document, many provinces actively implemented the central policy, especially in the areas where performance warnings appeared. In less than four months from the assessment, the situation must be reversed. Therefore, many areas directly adopted restrictions. Measures such as production and electricity curtailment.
These provinces’ electricity curtailment measures are not one-size-fits-all, not all enterprises are curtailed, but the focus is on high-energy-consuming enterprises, such as printing and dyeing, chemical fiber, steel, cement and other industries that are greatly affected.
Home appliance companies are mainly concentrated in Guangdong, Zhejiang, and Shandong. They will also be affected by this power curtailment action. However, compared with chemical, steel, cement and other industries, home appliance companies use much less electricity, and some household appliances In recent years, leading brands have invested a lot in the intelligent transformation of production lines, and the effect of energy saving and consumption reduction is obvious. There are even some powerful home appliance companies that can generate electricity on their own in a short period of time, which has little impact on the production of home appliances.
The curtailment is not due to power shortage, but to promote industrial upgrading
When I heard that it was a curtailment, many people’s first reaction was that the electricity was not enough. In fact, behind the power curtailment and production suspension, apart from the tight coal supply and the high electricity coal price, the main reason is that some areas have adopted energy consumption control measures due to the pressure of dual control of energy consumption. The ultimate goal is to promote Upgrading of energy-intensive industries.
In fact, my country’s total power generation capacity in 2021 is not low. In the first half of the year, my country’s total power generation was 3871.7 billion kilowatt-hours, twice that of the United States. However, the growth rate of power generation cannot keep up with the growth rate of foreign trade. According to data released by the General Administration of Customs, in the first eight months, the total value of my country’s foreign trade imports and exports was 24.78 trillion yuan, a year-on-year increase of 23.7% and a year-on-year increase of 22.8%.
This is due to the fact that many factories abroad have stopped production due to the impact of the epidemic, which has aggravated my country’s production tasks. It can be said that during the past two years of the epidemic, my country has almost guaranteed the global supply of commodities on its own.
However, the increase in my country’s exports is mainly concentrated in the low value-added manufacturing and processing industries. One of the main means of production in the manufacturing industry is raw materials and the other is electricity. The recent rise in commodity futures prices has led to a sharp rise in the prices of raw materials and coal. The price of coal remains high, but the floating price of electricity is under control. It is difficult for power plants to balance the cost by raising the on-grid price. Therefore, some power plants would rather generate less or even no electricity.
It is worth noting that the high demand brought about by the incremental orders for overseas epidemics is unsustainable. The increased domestic production capacity due to the settlement of incremental orders will become the last straw to crush a large number of small and medium-sized enterprises in the future. At present, many domestic enterprises in traditional fields are still in the stage of relying on each other to keep prices down, which is detrimental to my country’s overall competitiveness. The road ahead is to increase the added value of the company’s products and shift from traditional energy production to emerging energy-saving production. Now, through power and production restrictions, the energy consumption and carbon emissions of traditional industries have been greatly reduced, and some powerful companies have been encouraged to carry out large-scale technological innovations and device transformations, thereby achieving the purpose of improving industrial competitiveness.
Following the general trend, home appliance companies will also face the problem of promoting industrial upgrading in the future. This means that some companies with weak strength and backward industries will be eliminated.