jdhmnovel Chapter 133 spread throughout Hong Kong.
Chapter 133 spread throughout Hong Kong.
That evening, the television station hyped up the opening of the power company.
Eight o'clock in the evening is the time when everyone watches TV.
Unlike later times, in Hong Kong at that time, while not every household had a television, it was practically the same.
So when the news was broadcast on TV, it immediately sparked discussion among families.
"One cent per kilowatt-hour? Really?"
That's what they said on TV, so it must be true.
"Is Xinghe Power Company reliable since it was just established?"
"Well... with Xinghe Group as a backer, there shouldn't be any problems, right?"
"If it really were one cent per kilowatt-hour, I could save at least 20 yuan in electricity bills per month."
At 0.1 yuan per kilowatt-hour, it's only one-third the price of electricity currently on the market.
Almost every family started discussing it enthusiastically.
Don't underestimate the seemingly insignificant amount of 20 yuan saved on electricity bills each month; for many families, it makes a world of difference.
The next day, early in the morning, major newspapers in Hong Kong also reported on the incident.
Shocking! Galaxy Power's electricity prices have fallen below the bottom line.
Galaxy Group Enters the Power Industry
Headlines such as "Why does Galaxy Power have the confidence to challenge HK Electric and CLP?" drew many people to stop and buy.
It's fair to say that in Hong Kong, the rule is that you can skip breakfast, but you can't skip reading the newspaper.
Especially in the various tea restaurants, everyone was engrossed in reading newspapers.
"Do you think Xinghe Power's electricity price is real or fake?"
"Uncle, is it true? Xinghe Power Company is about to open for business. You'll know when you go and try it out."
"It's a pity that Xinghe Power Company only offers residential electricity services right now. It would be great if they offered commercial electricity at this price," the restaurant owner next to him said with a shake of his head.
The price of 0.1 yuan per kilowatt-hour is incredibly tempting, especially for business owners.
In Hong Kong, commercial electricity consumption is three to five times that of residential electricity consumption.
If they could also use electricity at this price, they would save at least several thousand yuan in electricity bills each month.
In the future, around 2020, a tea restaurant of about 1,000 square feet would have a monthly electricity bill of up to 340,000 yuan.
The entire city of Hong Kong was in an uproar because of Galaxy Power, and even office workers were discussing it.
After all, the power industry is a vital sector for people's livelihood, affecting everyone.
"You all saw the news last night and the newspapers this morning, right?"
Early in the morning, CLP Power held a group meeting.
“Mr. Kadoorie, I believe Galaxy Power is unreliable.” One of the executives stood up, looked at Kadoorie, and said, “At 0.1 yuan per kilowatt-hour, they haven’t even recovered their costs. I don’t believe Galaxy Power will maintain this price forever.”
"That being said, Xinghe Power's current price will definitely capture a portion of the market. The money lost now can be made back by raising prices later."
"Yes! Galaxy Power's actions may seem like a huge loss in the short term, but for the sake of long-term planning, if we don't take it seriously, Galaxy Power could easily steal all our customers away."
The executives of China Power Company were all shrewd and quick to figure out the key to the matter.
It now appears that Galaxy Power is burning money to provide welfare for all the people of Hong Kong by supplying electricity at low prices.
But what about the future?
Although they were unaware of the later cash-burning war between Meituan and Didi, from a capitalist perspective, this was quite obvious.
“Mr. Kadoorie, I suggest that CLP Power also lower its prices. We don’t need to lower them to the 0.1 yuan per kilowatt-hour that Galaxy Power pays, but only to the 0.12-0.15 yuan per kilowatt-hour. That would be enough to deal a blow to Galaxy Power.”
This is natural; the price difference between 0.1 yuan per kilowatt-hour and 0.15 yuan is only five cents.
However, if I switch companies, I'll have to replace the electricity meter, rewire, and so on, which is just too much trouble.
“No, we’ll drop it directly to 0.1 yuan, the same price as Galaxy Power.” Kadoorie said seriously, “Effective immediately, CLP Power will announce that the price will be reduced to 0.1 yuan.”
If the price is 0.15 yuan per kilowatt-hour, even if it's only a difference of five cents per kilowatt-hour, many families might be willing to go through the trouble.
Kadoorie's goal was to absolutely deny Galaxy Power Company any opportunity.
At just 0.1 yuan per kilowatt-hour, they gave Galaxy Power no chance whatsoever.
Once they've bankrupted Galaxy Power, they can easily make up for the losses they've incurred by raising prices.
"Yes, Mr. Kadoorie."
Soon, the statement issued by CLP Power Hong Kong spread throughout Hong Kong.
"Cathay Power has actually lowered the price of electricity to NT$0.1 per kilowatt-hour?"
At the same time, Hong Kong Electric also announced that the electricity price would be reduced to HK$0.1 per kilowatt-hour.
Galaxy Power's power grid covers the entire Hong Kong, including the main island.
Like CLP Power, HK Electric will absolutely not give Galaxy Power any chance whatsoever.
"Chairman, CLP and HK Electric have simultaneously announced a price reduction to HK$0.1." Upon receiving the news, Li Zhiyong hurriedly reported to Jiang Tiansheng.
"It seems that CLP and HK Electric are not stupid."
Jiang Tiansheng nodded, then instructed Li Zhiyong: "Next, Xinghe Power's publicity strategy should not only focus on price, but also on timing."
For example, becoming a customer of Xinghe Power entitles you to a 20-year guarantee of stable electricity prices; this can be explicitly stated in the contract.
Whether it's HK Electric or CLP, they lose money by lowering prices, but Jiang Tiansheng's Galaxy Power can still make a profit by pricing at HK$0.1.
Therefore, there is no problem in signing long-term contracts.
"Yes, Chairman."
Li Zhiyong nodded in agreement.
Soon, news of Galaxy Power's 20-year term spread throughout Hong Kong almost within a day.
As a result, CLP and HK Electric held another meeting.
"This Xingdian is really... it doesn't make money for itself, and it won't let others make money either." Inside the China Electronics Corporation, the senior executives of various companies all had indignant expressions on their faces.
Seriously, what a piece of trash!
Lowering the price is one thing, but you also have to impose a 20-year time limit?
Are you kidding me? Losing money for twenty consecutive years?
"How about we join in?"
One of the company executives asked a probing question.
"Otherwise what? Are we just going to stand by and watch Starlight steal our customers?"
"But do we also need to sign a contract like Xingdian, guaranteeing that it will remain unchanged for 20 years?"
"Of course not, 20 years, you'd go bankrupt from losing money."
"How much? One year, two years? I'm afraid that because the term is too short, those citizens will directly switch to Xingdian."
"Mr. Kadoorie, HK Electric has released a statement."
Just then, a manager suddenly spoke up.
"Quick, turn on the TV."
When I turned on the TV, it was showing a news release from Hong Kong Electric Company.
"According to our report, just one minute after announcing a price reduction today, HK Electric announced a price increase for electricity, raising it from HK$0.35 per kilowatt-hour to HK$0.45, an average increase of HK$0.1 per kilowatt-hour..."
The executives of China Power Company were completely stunned when they saw the news on TV.
"What's going on? Why did HK Electric raise its prices?"
"Yes, shouldn't the price be lowered?"
Just then, Kadoorie suddenly chuckled and said, "Announce to the public that CLP Power is also canceling the price reduction and increasing the price by 0.1 yuan per kilowatt-hour."
"Mr. Kadoorie..."
A senior executive standing nearby was about to try to persuade Kadoorie.
Suddenly, the general manager of CLP's eyes lit up and he said loudly, "Mr. Kadoorie is wise. In this way, it seems that CLP and HK Electric are giving up the residential electricity market at the same time and handing it over to Star Power Company."
However, in reality, after giving all these customers to Star Power, the calculation is based on Hong Kong's annual residential electricity consumption of 10 billion kilowatt-hours.
"For every ten million units of electricity generated, the estimated loss is around 0.10-0.15 yuan. If it's ten billion units, that means a minimum loss of over 15 billion yuan per year..."
Hong Kong's electricity consumption has been increasing every year.
The company is losing 1.5 billion yuan a year, and according to Xingdian's policy, the contract is for 20 years.
Over 20 years, the losses will amount to at least 30 billion.
After all, the cost of generating electricity is increasing every year, whether it is generated by gas or thermal power, the cost of coal and gas is rising.
We might lose 1.5 billion this year, 2 billion next year, and 3 billion the year after. Who knows?
They may seem to be giving you all the customers, but in reality, they're just trying to bankrupt you.
Who starts a company without the intention of making money?
I don't believe your Star Power can last three years.
For the past three years, CLP and HK Electric have been willing to forgo profits from residential electricity to cripple Star Power.
After Star Power dies, these customers will return to CLP and HK Electric.
Furthermore, whether it's Hong Kong Electric or CLP, their real major customers are commercial electricity companies.
As long as Xingdian doesn't get involved in this field, they have nothing to worry about.
Currently, they have not found any indication that Star Power intends to enter the commercial electricity sector.
This is also normal.
If Star Electric enters the commercial electricity market at this price, it will likely suffer even greater losses.
Just after receiving the statements from HK Electric and CLP, a mocking smile crept onto Jiang Tiansheng's lips.
You thought I was on the second floor?
I was actually on the fifth floor.
At 0.1 yuan per kilowatt-hour, CLP and HK Electric may not make a profit, but that doesn't mean Star Power doesn't.
Two days have passed in the blink of an eye.
Early in the morning, Jiang Tiansheng sent someone to summon Li Zhiyong.
"Chairman, you called me."
Li Zhiyong stood in front of Jiang Tiansheng.
"How's the situation these past two days?" Jiang Tiansheng asked, looking at Li Zhiyong.
"Chairman, many citizens have come to sign contracts these past few days. We can only do so after the company officially opens for business..." Li Zhiyong reported to Jiang Tiansheng in detail.
Currently, due to price increases by both CLP and HK Electric, Hong Kong residents are voting with their feet and choosing Star Power.
In just the last two days, Xingdian has received quite a few applications.
"We'll start signing contracts a week later."
Jiang Tiansheng thought for a moment and then gave instructions to Li Zhiyong.
You can sign a contract first, and then arrange for a technician to come and replace the electricity meter from Xingdian Company and connect it to Xingdian's cable after the business officially opens.
"Yes, Chairman."
Li Zhiyong nodded in agreement.
So far, Xingdian has installed 2400 solar panels, which can generate 8 million kilowatt-hours of electricity per day if the power generation time is calculated at 800 hours per day.
Based on current residential electricity consumption, if each household uses an average of 3 kilowatt-hours per day, Hong Kong currently has a population of 10 million and a total of 2.3 million households, which is almost enough to cover the population.