Although the power suppliers were required to spare no effort to ensure the power supply to residential communities, hospitals, schools, telecommunications and public transport, some neighborhoods have had their electricity and water cut off, and even traffic signals and elevators have stopped working.The shortage of electricity in some regions of the country has reached such an extent that even industrial production and people's livelihoods are already impacted by it.
For instance, 14 cities in Liaoning province, a national heavy industry base in Northeast China, have started rationing the supply of electricity.
State Grid Corp of China, a state-owned enterprise, addressed the issue of electricity limits and said it will try its utmost to safeguard the bottom line of people's livelihoods, development and safety on Monday.
The power shortage originates from multiple causes. Due to the price hikes of coal and gas, and the comparatively low electricity price in the country, which is settled by the government, the power plants' profit margins have become smaller and smaller. The elimination of backward coal production capacity and the decrease in coal imports have both driven up the price of coal. Some plants have suspended production to check the fast rise in costs, as the more electricity they generate, the more economic losses they will have to sustain.
The economy has developed rapidly and the demand for electricity has increased significantly in the past months.