In an alarming case of electricity price abuse, the Hefei Phosphate Fertilizer Plant in Hebei Province has reportedly turned into an unofficial "power supply bureau" by reselling subsidized electricity to illegal enterprises. This practice not only violates national regulations but also leads to significant losses for the state.
According to a local source, the plant—once a medium-sized state-owned enterprise—has been leasing parts of its facilities to two unauthorized factories: a small steel mill and an oxygen plant. These entities benefit from the preferential rural electricity rate, which is capped at 0.4 yuan per kilowatt-hour, while regular industrial rates are around 0.73 yuan. By supplying them with this cheaper power, the fertilizer plant earns a monthly profit of tens of thousands of yuan.
The situation became even more concerning when it was revealed that one of these "factory-in-factory" units is a banned small steel plant, operating under the radar despite being officially prohibited. The other, the Xinyuan Oxygen Plant, lacks proper permits and operates without full regulatory approval. This illegal arrangement has persisted for years, highlighting serious lapses in oversight.
During an unannounced visit, reporters found the phosphate fertilizer plant largely abandoned, with only a few machines still running. However, just outside the main gate, the Xinyuan Oxygen Plant was active, with oxygen tanks being loaded and transported. Nearby, a small steel mill was producing at night, using electric arc furnaces to melt scrap metal and produce rebar, all while evading detection.
Local authorities have repeatedly tried to shut down the illegal operations, but enforcement has proven difficult. The power company, responsible for regulating electricity usage, claims they lack the authority to penalize such violations, as their role has shifted from law enforcement to a purely commercial function. As a result, the illegal enterprises continue to operate, benefiting from stolen electricity and undermining the integrity of the system.
This scandal raises serious questions about accountability. Who is ultimately responsible for allowing such exploitation? How long will these violations go unchecked? With state assets being lost and illegal businesses thriving, the need for stronger oversight and stricter enforcement has never been more urgent.
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