China Power Supply Crunch

Economy

A top official at China’s state-asset regulator the State Grid Corporation of China (SGCC) has urged electricity companies to prioritise residential over industrial users as the country experiences a power supply crunch, Reuters reports.

Two thirds of Chinese provinces had announced rolling plans for electricity rationing as of 28 September as a combination of coal supply tightness and energy efficiency targets drives them to curb power usage, IHS reports.

Mines, factories, oil refineries, shipyards, soyabean crushers and steel mills have experienced electricity cuts, with more than 80 steel producers announcing temporary shutdowns or maintenance work in September, according to industry media.