Shenzhen business news
On 4 august, sichuan xichang power co. Ltd. (hereinafter referred to as “xichang power” or “corporate”) issued a public announcement on the implementation of the policy on low-cost electricity for residents. The bulletin states that, according to the sichuan provincial development and reform commission, the company plans to implement a low-cost electricity policy for the population in the valley from 1 september 2025. This policy will result in a reduction in the average price of the company's household electricity sales throughout the year, with a projected reduction of about $5. 55 million in net profits in 2025。
The announcement revealed that the sichuan provincial development and reform commission issued a notice on 31 july on matters relating to the implementation of low-value policies for electricity for local electricity grid residents, and that it was planned to implement it as from 1 september 2025, as a result of the company's ongoing efforts to secure electricity for the 2025 fire festival series of correspondence brigades in xichang city, affecting the upgrading of facilities。
According to the concrete implementation programme disclosed in the bulletin, the main elements of the current electricity price policy show that the local electricity grid throughout the province is available for the local users of the “one-stop-table” steps in the district to implement the low-time electricity policy and that the group users do not implement the low-time electricity policy。
“a one-household” users use electricity at a price of $0. 175 per kilowatt per hour for the water-rich period (june-october) (from 15:00 to 07:00 per day), and at a price of $0. 2535 per kilowatt per hour for the dead, flat-water period (november-may). The low-lying time period is covered by electricity use in the calculation of the steps, and the level and price escalation criteria for the steps are implemented according to current policies of the local grid。
Gains and losses from the implementation of low grain prices by local grid enterprises are integrated into the local grid transmission and distribution price reform。
With regard to the impact of the current electricity price policy on the company, xichang said that the implementation of the current electricity price policy would result in a reduction in the average price of the annual sale of electricity in the household type, which would have an impact on the company's performance in 2025. Based on preliminary estimates, the implementation of this electricity policy is expected to reduce net profits by approximately $5. 55 million in 2025。
The bulletin stated that the measure was preliminary and that the final impact was based on the company's audited annual financial report for 2025。
The successive price adjustments reflected sichuan province's determination to deepen the reform of the electricity system, but in the short term they did put pressure on the profitability of local power companies. Xichang power is the main power provider in coolshan county, which recently published a semi-annual performance forecast for 2025. Based on preliminary financial estimates, the company is expected to achieve a net profit of approximately $3. 1 million in the semi-annual year 2025 attributable to the parent company owner, an increase of approximately $28. 62 million over the same period - $2,552 million in the previous year. The net profit for owners of parent companies after deduction of non-recurring gains or losses is approximately $3 million。
Read: fang liang
