China's power shortages will likely force some European companies operating there to delay orders and some firms are unhappy about how authorities notify them about power cuts, a European business group said on Wednesday (Oct 13).
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"Many members think they have to delay their orders, their customers are unhappy, so it affects their normal business, and maybe some customers will cancel their orders," Klaus Zenkel, vice president and chair of South China at the European Chamber of Commerce told reporters at a media briefing.
Other member companies have complained that factories often get notice from local governments of power shutdowns on the day itself, which limits manufacturers' ability to plan for them, said Bernhard Weber, vice-chair of the European Chamber's Nanjing chapter.
"Companies are notified in the middle of the night via SMS that power cuts are coming," said Weber.
Only in an economic zone in the city of Wuxi do authorities issue factories a daily power quota on a month-by-month basis, he said.
"All the other regions, all the other cities, they do it on a day-to-day basis. So you never know whether you can produce, basically, from shift to shift."
Zenkel also said that some companies had to rely on their own diesel generators when they lost access to the regular power supply.