Chinese provinces have seen a slower rise in power consumption due to an economic slowdown, with 22 of them posting single-digit growth or even a decline last month, an industry body said.

The growth in electricity use nationwide has slowed since May, when consumption in 11 provinces rose less than 10 percent year on year. The number of provinces rose to 15 in June, 18 in July and 22 in August, according to the China Electricity Council.

A global economic slowdown has affected orders for many export-oriented areas in China, reducing manufacturing activities and power use, the council said. It also added that the Beijing Olympics in August was also behind the slower growth as production cuts or suspension were imposed in some industries in north China.

The annual growth rate in the northern Inner Mongolia Autonomous Region fell sharply to 7.63 percent in August from May's 22.56 percent. Power use fell 3.64 percent last month in Beijing, and declined 1.74 percent in neighboring Tianjin. In the coastal regions where export-oriented manufacturers cluster, August's power use grew only 0.35 percent, 3.87 percent and 6.52 percent in Jiangsu, Zhejiang and Guangdong provinces respectively, the council said.

The nation's total power consumption rose 10.19 percent to 2.33 trillion kilowatt-hours in the first eight months of the year, 0.72 percentage point lower than the rate between January and July, the council said.

Some major domestic aluminum smelters, which consume vast amounts of energy, have already agreed to cut output by more than 10 percent in the face of higher electricity costs and falling prices of the metal.

The council also attributed lower-than-usual temperatures in August and coal shortage to the slower consumption growth. But the coal supply shortfall at power stations has been easing since August, it added.

Some southern provinces maintained strong growth in power consumption as they recovered from natural disasters early in the year, with Guizhou's power use jumping 21.17 percent in August, the council said.

Consumption in other northwestern provinces and regions such as Shaanxi and Ningxia also rose quickly due to demand from industries and their easier access to coal.

(Shanghai Daily September 25, 2008)