Increase in electricity expenses by 210,000 yuan per year

January 25, 2019

“Our electricity cost will increase by an additional 210,000 yuan per year after the increase in electricity prices. It is increasingly difficult to do business.” After learning about the increase in electricity prices, the director of Xiajin Xinshi Cotton Industry Co., Ltd. in Dezhou City Long sent a good sigh. According to the books he presented, the company's spinning business has an annual turnover of 80 million. Before the adjustment, it uses 569,700 kilowatts per month, and the electricity expenditure is 400,000 yuan. According to regulations, the general industry and commerce increase 3.07 cents per kilowatt hour. Taking into account the annual increase in optoelectronic costs will be a net increase of 21 million, which can be described as worse for the profitability of the textile industry.

Shih Chuan-liang said that due to recent fluctuations in cotton prices, this year's spinning business is particularly difficult to do. As a small-scale spinning company, bargaining power is limited, and the cost of the increase in electricity price is unlikely to be increased through downstream product prices. Realization, so they can only silently endure the loss of profits caused by the upward adjustment of costs.

According to industry sources, as the energy consumption of electricity is an important cost for enterprises, especially for SMEs with poor bargaining power, because it is difficult to transfer costs through price increases, this increase in electricity prices will burden them with additional electricity costs. burden.

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