ABOUT News Center Many provinces have raised electricity prices significantly

News Center
Many provinces have raised electricity prices significantly
Many provinces have raised electricity prices significantly
The reason for this round of power curtailment is mainly due to the surge in power generation costs caused by the high coal price, which makes the power supply tight.

Recently, due to the impact of limited electricity and production, many provinces have adjusted electricity prices again.

At the end of September, Hunan issued a notice, proposing that when the unit price of standard coal in the plant is higher than 1,300 yuan, for every 50 yuan/ton increase, the upper limit of coal-fired thermal power transaction price will be raised by 1.5 cents/kwh.

Anhui also issued a notice that the direct transaction price of coal power can be increased by no more than 10% on the basis of the benchmark electricity price.

Guangdong also issued an adjustment plan. Starting from October, the peak-valley price gap will widen, and the peak-valley electricity price will be increased by 25%.

Inner Mongolia has also issued a draft for comments. For power users who participate in electricity market transactions but withdraw, the guaranteed minimum electricity price is 1.8 times the list price.

Shandong also stated that the specific electricity price is formed by market entities such as power generation companies, electricity sales companies, and electricity users through a market-oriented approach, within the range of the benchmark price + fluctuation, and the fluctuation range does not exceed 10%.

Zhejiang has optimized the time period division since October 15, and widened the price difference between peaks and valleys.

From November 1, Henan has also appropriately expanded the scope of implementation of time-of-use electricity prices and improved the peak-valley electricity price mechanism.

So, what impact will the increase in industrial electricity prices have on the packaging and printing industry?

Since my country's packaging and printing industry is an industry with a very high degree of electrification and automation, looking at the world, the productivity level of my country's packaging and printing industry is first-class, and it can even be said to kill European and American companies. However, electrification also means that the cost of electricity for enterprises is high. Once the electricity price is raised sharply, the production cost of enterprises will also be out of control.

Let's take a look at two sets of news published on the Internet, and we can get a glimpse of the high electricity consumption in the packaging and printing industry.

According to upstream news reports in September 2020, Chongqing Hongjin Printing Co., Ltd., located in Nan'an District, has transformed the traditional station building into a digital station through the implementation of digital transformation, improving management efficiency, saving 50% of staff hours and labor costs. 150,000 yuan/year, the power consumption of the air compressor station will drop by about 15%, and the annual electricity consumption will be saved by more than 250,000 kWh.
From the above data, it can be seen that the annual electricity consumption of Chongqing Hongjin air compressor station alone is as high as 1.67 million kWh, and the electricity consumption of the whole plant is conservatively estimated to be millions. If calculated according to the 25% increase in peak electricity consumption in Guangdong, and calculated according to the peak electricity consumption of 1 yuan/kWh, the electricity cost of the air compressor station alone will increase by 410,000 yuan!

Looking at another news, Chutai Packaging Co., Ltd., located in Xiangyang, Hubei, has 11 production lines, with a daily output of 15,000 sets and a daily power consumption of 14,000 kWh at full production. According to the electricity price in Guangdong, the daily electricity cost will increase by 3,500 yuan during the peak period and 105,000 yuan per month.

For the packaging and printing industry faced with raw material costs, labor costs, and environmental protection costs, few companies can withstand the sharp rise in electricity costs.

Over the past six months, as the scissors gap between PPI and CPI has continued to widen, the packaging and printing industry has experienced price inversions, and the business situation of enterprises is worrying. The only solution is to increase the price!