China: Power crisis likely to persist in parts of Sichuan Province through at least late August amid a supply shortage and increased demand

Event

Power supply shortages will likely persist across Sichuan Province through at least late August due to an ongoing energy crisis, increased demand, and severe heat. The government has enacted austerity measures, including power rationing and commercial production shutdowns. Authorities also require office and retail store operators to conserve power utilities; rail operators in Chengdu city have turned off lights across several stations. Some companies have been forced to suspend their manufacturing activities at least temporarily until alternate energy arrangements could be made. Power cuts have also been reported in recent days in Dazhou city, resulting in freight shipping disruptions. Supply chain issues could emerge if the power shortages become protracted.

Transport disruptions due to malfunctioning traffic signals or electrical rail infrastructure are possible during periods of load shedding. Temporary commercial and communications disruptions, including cellular service disruptions, may also occur during power outages. Government buildings and large businesses that generally rely on private generators are unlikely to be directly affected by outages; however, authorities may force smaller businesses to shut down. Essential services, such as ATMs and petrol stations, may also temporarily cease to operate during load shedding periods. Disruptions to the potable water supply are likely in areas dependent on electronic water filtration systems.

There is an increased security risk as a result of power outages. Blackouts could adversely affect security protocols, including alarm systems and electronic fences; opportunistic criminal activity could increase during electricity outages.

Advice

Plan accordingly for prolonged commercial disruptions. Conserve gas and electricity. Charge all communication and portable electronic devices when possible. Unplug electronic equipment that is not connected to surge protectors. Exercise caution when driving in areas affected by restriction measures. Verify that security systems are working, including after power resumes. Ensure that generators are functional and properly fueled.