[Asia Economy Reporter Jeong Dong-hoon] Due to the 'June heatwave' centered in the central and southern regions of China, electricity consumption within China is surging.
According to the China Meteorological Administration on the 29th, since the 13th of this month, the daytime high temperatures in central, southern, and western regions such as Henan, Shandong, and Sichuan have been hovering around 40 degrees Celsius amid the heatwave.
On the 20th, Turpan in Xinjiang reached up to 45 degrees Celsius, and several cities in Henan and Hebei provinces recorded daytime highs of 43 to 44 degrees. With the normalization of production facility operations following the easing of COVID-19 and a sharp increase in air conditioner usage, electricity consumption in seven regions including Hebei, Shandong, Henan, Shanxi, Gansu, Ningxia, and Xinjiang set record highs for June.
Jiangsu Province's daily electricity consumption exceeded 100 million kW on the 17th, which was 19 days earlier than the peak electricity usage last summer. Concerned about a recurrence of last autumn's power shortage, Yunnan, Ningxia, Zhejiang, and Hunan provinces raised electricity rates targeting steel, cement, and non-ferrous metal manufacturers with high electricity consumption, and other local governments are reportedly considering increases, according to Jeil Finance.
Zhejiang Province raised rates by up to 35%, and Hunan Province allowed for an additional charge of 10 yuan (approximately 1,900 won) per kW for usage exceeding contracted amounts.
Last autumn, China experienced power shortages in over 20 provincial-level administrative regions due to disruptions in coal supply for power generation and the rigid enforcement of carbon emission reduction policies by authorities, causing production disruptions for manufacturers.
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