The government promised that the price of electric power was not fulfilled yet

As the government has failed to meet its commitments and electricity prices remain excessively high, more than two-thirds of calcium carbide facilities in Shanxi Province have ceased operations, while the rest are operating at half capacity or are on the verge of shutting down. This situation threatens the entire industry’s sustainability. In response, local calcium carbide companies are urgently calling on the government to honor its promises. On April 19, the Shanxi Provincial Calcium Carbide Industry Association submitted an emergency report to Governor Yu Yujun, seeking immediate government intervention. The report outlined several key demands. First, it called for the suspension of three long-standing fees—“water resources compensation fee,” “power base construction fund,” and “utility for urban public utilities”—which were originally promised to be abolished in 1997 but have continued to be charged until now. Second, the association urged the government to fulfill its commitment to support enterprises that align with national industrial policies, particularly by addressing the issue of electricity pricing. According to the "Shanxi Province Power Network Sales Price List," the large industrial electricity price is 0.316 yuan per kWh, while the specific calcium carbide electricity rate is 0.293 yuan per kWh. However, in practice, only older calcium carbide furnaces built before the 1980s are still benefiting from the lower rate. All other facilities are being charged the higher industrial rate. This discrepancy has sparked strong reactions from the industry. On one hand, outdated regulations are still being enforced despite changing conditions. On the other hand, this practice is not seen elsewhere in the country, where electricity prices are typically aligned with product types. Implementing a true peak-to-valley pricing system would not only benefit calcium carbide producers but also help balance the province’s power grid and promote more efficient energy use. Additionally, the industry is requesting the government to accelerate the restructuring of the calcium carbide sector according to the "Access Conditions for the Calcium Carbide Industry" and other relevant national policies. This includes closing down non-compliant enterprises and outdated furnaces that do not meet environmental or efficiency standards. Shanxi is one of China’s leading provinces in calcium carbide production, accounting for approximately 25% of the nation's total output. The industry contributes 12% of the province’s total chemical output value. By the end of 2005, there were 71 calcium carbide-producing enterprises in the province, with a total capacity of 2.5 million tons and an actual annual production of 1.04 million tons. If the entire industry were to shut down, it would severely impact the implementation of the national "Eleventh Five-Year Plan," particularly the development of calcium carbide and acetylene chemicals, as well as other coal-based industries. It would also have a ripple effect on related sectors such as power, construction materials, and chemicals, causing significant economic disruptions.

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