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    China's Electricity Price Has Dropped. Good Textile Enterprises Can Greatly Reduce Costs.

    2016/1/4 9:40:00 33

    Electricity PricesTextilesJiangsuNew NormalInvestmentXinjiang

    China's electricity price should be reduced! Spin Over the years, the company has finally seen the hope of price reduction at the dawn of the new year: the executive meeting of the State Council, held in December 22nd, decided to reduce the electricity price of coal-fired power generation from January 1, 2016, according to the change of power generation cost, and the national average will be reduced by about 3 cents per kilowatt hour.

    The meeting confirmed that the price reduction would be used to reduce the general industrial and commercial sales price with the same magnitude. Jiangsu The decline in electricity prices will be basically consistent with the national average. Insiders estimate that the price reduction will reduce the cost of the two or three industry by more than ten billion yuan next year.

    All along, the high price of electricity is the unspeakable pain of textile enterprises. The good news is that many textile enterprises are crying for joy.

       Electricity expenditure is second only to raw materials. How big is the impact?

    In recent years, the textile industry has slowed down its profit growth, and even the profit has shrunk in individual sub sectors. The high electricity price is no doubt adding to the difficulties, which makes it difficult for textile enterprises to breathe.

    In terms of textile mills, electricity charges are high only after the cost of raw materials. Especially for enterprises with relatively high degree of automation, the cost of electricity charges is higher than that of personnel. Take a textile enterprise with 840 water jet looms and an annual air-jet loom, with an annual output of 70 million meters, for example, electricity charges in one year are around 400-500 yuan, and the employment expenses of enterprises are also 300-400 yuan.

    Let's take a look at the important printing and dyeing enterprises in the textile industry chain -1.html > printing and dyeing enterprises: taking a factory which sells 200 million yuan annually, for example, the annual electricity cost is 700-800 yuan, and the workers' wages are also 700-800 yuan. The consumption of the largest component of the cost expenditure is only about 20 million yuan per year.

    Put forward in the state New normal goals Under the background of industrial adjustment, how to raise the automation level of textile enterprises by high price? This has caused great concern in the industry. People in the industry say they have called for a reduction in high electricity prices, but there has been no real change. Electricity price has great influence on the textile industry. Many people in the industry say that the high electricity price is second tax revenue, which has greatly weakened the competitiveness of China's manufacturing industry and seriously affected the competitiveness of China's textile industry in the world.

       Electricity price is higher than developed countries. Where is the price advantage?

    The price level of electricity in China is higher in the world. At present, the electricity price in Jiangsu and Zhejiang is about 0.9 yuan / degree (peak valley electricity average), about 0.7 yuan in the mainland, and the electricity price in Ningxia, Xinjiang, is about 0.35 yuan. In many developed countries and regions, such as the United States, Japan, France, Britain, South Korea, Taiwan, Hongkong and other places, the electricity price is cheaper than that of us. The electricity price is about 4 cents each, which is very different from that in China. In addition, the developing countries such as India and Pakistan have also lowered the electricity price, which has greatly reduced the cost of the cotton spinning and chemical fiber enterprises for 24 hours, and has reduced the cost and achieved relative advantages. This means that China's textile enterprises, producing the same products, will spend more on the cost of electricity charges, and the price and profit advantages will undoubtedly be diluted. This will not only weaken the international competitiveness of Chinese products, but also impede the implementation of industrial upgrading and transformation in China's textile industry.

       Electricity profits are close to the top, and price adjustment is understandable.

    China is a big coal consuming country, and more than half of the coal will be filled into the boilers of power plants. Under the current system of "market coal and planned electricity", the drop in coal prices will naturally mean a drop in cost for the power generation industry. The current coal electricity linkage mechanism was established in 2012. According to regulations, when the price fluctuation of electricity coal exceeds 5%, the electricity price will be adjusted accordingly in the year. But since 2012, coal has bid farewell to the "golden ten years", and prices have been falling, but the coal linkage mechanism has only been launched once in April this year.

    According to the latest November electricity coal price index of 326.81 yuan per ton, down 22.6% compared with the same period last year, the profit for the electricity market has increased accordingly. According to the dynamic report of the electricity industry in 2015 of 2015, the total profit of the electric power industry has increased 13.6% over the same period last year, of which the thermal power enterprises realized a 6.3% increase in the total sales volume while the sales revenue decreased by 6.3% compared with the same period last year, and the profit has approached the top. Some people believe that China's overall electricity price should be reduced to below 0.5 yuan.

       The biggest reduction in price in recent years, enterprises can save 100 billion.

    In the past several times, the adjustment of online tariff has been the biggest since 2013. If the national industrial electricity consumption is calculated at 3 trillion and 990 billion degrees in 2014, the sale price will be reduced by 3 cents, which means that the national industrial enterprises can save about 120 billion yuan. Specifically to a factory, the electricity price cut by 3 cents means that the direct cost is reduced by 3.3%, while the gross profit of the general textile enterprises is around 10%~15%.

    However, the reduction of electricity prices is only an auxiliary tool for the government to help enterprises to reduce costs. To improve the competitiveness of enterprises, we should start with technological innovation and new product research and development. Moreover, the current situation of environmental protection is serious, and the reduction of electricity prices can not affect the promotion of energy saving and emission reduction. Sustainable development should still be the primary responsibility of the textile industry.

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