CX Daily: China’s Power Retailers Reel as Cheap Deals Backfire
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Cover Story: China’s Power Retailers Reel as Cheap Deals Backfire
Electricity retailers in southern China are facing billions of yuan in losses after promising customers cheap power, only to see wholesale prices surge.
Nine electricity retailers affiliated with state-owned energy groups warned in a Sept. 30 joint appeal that the electricity retailing industry in the Guangxi Zhuang autonomous region could lose 5 billion yuan ($747 million) this year. The industry’s losses exceeded 2 billion yuan in the first eight months and topped 1 billion yuan in September alone, according to the companies, which requested emergency government relief.
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