Enterprises in Hunan Shut ahead of Schedule as Power Shortages Exceed 30%

SHANGHAI, Sep 28 (SMM) — Hunan Gold (002155.SZ) announced on September 27 that under the influence of the power rationing, its subsidiary companies Hunan Huangjindong Mining Industry Co. and the beneficiation plant of Dawan Mining temporarily suspended production.

This is the latest shutdown after the power rationing in Hunan.

A person with the Hunan Provincial Development and Reform Commission said that the power rationing mainly aimed at large energy consumers and is generally controllable.

But many parks in Changsha, the provincial capital, have recommended that enterprises in the park close in advance due to the shortage of power supply.

Last year’s peak in the winter of Hunan’s power rationing was impressive, but why is the power supply in Hunan so tight?

The demand for electricity for residents' lives has increased sharply in September due to the hot weather. Moreover, the strong production of enterprises and insufficient power resource have led to the current shortage of electricity.