In an alarming case of policy abuse, the Hefei Phosphate Fertilizer Plant in Hebei Province has turned into an unauthorized "power supplier," illegally reselling discounted electricity to banned and unregistered enterprises. This practice not only violates national regulations but also leads to significant financial losses for the state.
The plant, a medium-sized state-owned enterprise, has been using its preferential electricity rates—set at no more than 0.4 yuan per kilowatt-hour—to supply power to two illegal entities: a small steel mill and an oxygen plant. These facilities, both banned or lacking proper permits, benefit from the subsidized electricity, while the fertilizer plant earns tens of thousands of yuan monthly through the price difference.
According to internal sources, the phosphate fertilizer plant has been leasing parts of its premises since 2004 to these unauthorized businesses. By charging them as little as 0.2 yuan per kWh, while paying the state 0.4 yuan, the plant profits by 0.1 yuan per unit. With monthly consumption reaching over 500,000 kWh, the profit is substantial, and the state suffers losses of around 150,000 yuan each month.
The small steel mill, which operates mainly at night to avoid detection, uses electric arc furnaces to melt scrap metal and produce rebar. Despite repeated inspections and equipment seizures by local authorities, it continues to operate, largely due to the inability of the power company to cut off its supply.
The Xinyuan Oxygen Plant, another tenant, lacks a valid filling permit and operates without proper licensing. The power supply company confirms that neither of these entities should be receiving industrial electricity, which costs approximately 0.7348 yuan per kWh. However, they continue to receive subsidized power through the phosphate plant’s dedicated line.
When questioned about the legality of this arrangement, officials from the Hejian Power Supply Company stated that transferring electricity without authorization is a violation of the Electricity Law. However, they emphasized that their role is now limited to providing service, with enforcement powers having been transferred to the Economic and Trade Bureau. Unfortunately, the bureau claims it has yet to take action, leaving the situation unresolved.
This scandal highlights a serious gap in oversight and accountability. While illegal enterprises profit, state assets are being lost, and public resources are misused. The question remains: who is ultimately responsible for allowing such practices to persist? And how long will this system continue unchecked?
Noodle & Water Shooter Series,Seahorse Water Shooter,Water Noodle With Animal Heads,Water Gun Shooter
ZHOUSHAN SKYTOP COMMODITY CO., LTD. , https://www.bodyboard.com.cn