In recent years, profit growth in the textile industry slowed down, and some segments even saw profits shrink. In addition to raw material costs, high electricity prices have always been the heart of the textile industry unspeakable pain. Today, the textile, printing and dyeing, chemical fiber industry suffered another difference in price policy, no doubt makes it difficult to breathe!

In order to promote energy conservation and emission reduction and upgrading of industrial structure, according to the "Opinions of CPC Guangdong Provincial People's Government on Promoting Reform of Price Mechanism" and the basis of the "Notice on Further Strengthening the Implementation of Differential Electricity Price" issued by the former Guangdong Provincial Price Bureau Recently, the Guangdong Provincial Development and Reform Commission decided to extend the implementation of the province's policy of differential power prices to the province's chemical fiber, printing and dyeing, leather and other 11 industries.

From January 1, 2018 onwards, the 11 industries identified as out of class and restricted enterprises, the price of electricity on the original basis, respectively, increased by 0.3 yuan per kWh and 0.1 yuan.
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As early as 2016, the Jiangsu Provincial Department of Environmental Protection released the results of environmental credit evaluation of 944 state-owned key enterprises in the province in 2015. The evaluation results were divided into five grades: green, blue, yellow, red and black. These "black" businesses are subject to differential tariffs, water prices, stop issuing loans and other punitive measures.
For example, the Jiangsu Provincial Department of Environmental Protection Joint Provincial Price Bureau piloted the difference electricity price policy for some high-polluting enterprises of grade red and black. The electricity price increased 0.05 yuan and 0.1 yuan per kilowatt-hour on the basis of the current price.
 
How different tariff policies hurt the textile industry?
It is well known that for textile mills, electricity costs are second only to raw materials in terms of cost. Especially for the relatively high degree of automation of enterprises, electricity costs have been higher than the labor costs of personnel expenses. For example, a textile company that owns 840 water-jet and air-jet looms and produces 70 million meters of annual output a year has an annual electricity bill of about RMB400-500 million and an employee's employment expenditure of 300-400 million yuan.
Let us look at the printing and dyeing enterprises: a year with 200 million yuan in sales of factories, for example, the annual cost of electricity 700-800 million, while the wages of workers in the 700-800 million, the largest part of the cost of dyed paint, The annual consumption is only about 20 million yuan.
If calculated according to the national industrial electricity consumption of 3.99 trillion kWh in 2014, a 3 cent increase in the sales price means an increase of the cost of the industrial enterprises in the country by about 120 billion yuan. Specific to a factory body, the price increase of 3 cents means that the direct cost increase of 3.3%, while the general profit margin of textile companies in about 10% to 15%.
Thus, the difference in electricity prices on the impact of the textile industry is no small matter!
 
How to deal with the textile industry?
The current environmental situation is grim, all local governments began to use price leverage to speed up the elimination of outdated production capacity, and promote industrial restructuring. Electricity consumption accounts for the bulk of the cost of textile production. The fare increase is a punishment for backward textile production capacity and irrational use of energy.
Shandong Textiles Textile Industry Management Office, said a person in charge of the move is conducive to accelerate the technological transformation of enterprises can help businesses better use of energy, find ways to save energy. However, he proposed that the industry be treated differently. The textile industry is a traditional livelihood industry. If the calculation is directly based on the area of ​​business or the output of the year, the number may seem a little bit unilateral. The level of demand for electricity prices in spinning, printing and dyeing, weaving and apparel is different, and it is reasonable to have a specific "standard of using energy" in line with the economic benefits or overall benefits generated by the enterprises in that year. In this regard, the government should fully listen to the Voice.
Head of the Guangdong Textile Association believes that this is a step in the transformation and upgrading of enterprises must take. With the scarcity of resources and the "high pressure" of policies, it will inevitably lead to rising energy costs and long-term development of enterprises. Scientific and rational energy use, energy conservation and speeding up of technological upgrading must be accelerated. If a company's energy costs close to 1/3 of the cost of the company, then we must make more efforts in this regard, in order to enhance the competitiveness of enterprises. Energy saving is no longer a "soft constraint" in the future, but a real "hard target."