Local factories may have to reduce production or change their work schedules to help Shanghai deal with a power shortage over the winter, the government said Wednesday.

The city is facing a shortage of 2 million kilowatts in its power generating capacity this winter, according to the Shanghai Electric Power Co.

A record-breaking heat wave this summer pushed up power consumption, forcing some 4,000 businesses in the city to reschedule production to non-peak hours and compelling many factories to close for several days at a time.

With local residents turning up their heaters as the temperature drops, the city is once again facing a shortage and looking to retail and manufacturing companies to make some sacrifices.

Shopping malls will be the first users asked to cut power usage by turning down heaters.

"Power control measures will apply to dozens of users on a trial basis, and if the measures work, more similar users will be included," said Jiao Yang, a city spokeswoman.

Jiao wouldn't say how many users will be affected, but did say controls could help reduce the power demand by up to 400,000 kilowatts at shopping malls alone.

"The government will try its best to reduce the negative influence of the power shortage and ensure power supply to residential users," said Jiao.

She was quick to add that foreign-invested companies in Shanghai will get as much power "as the government can allocate them."

The city is looking to buy 1 million kilowatts of power from other parts of the country to augment the 9.6 million kilowatts of peak generating capacity at local power plants.

The city has already lined up 2 million kw from other cities, but buying more could prove difficult as the power shortage exists nationwide.

The city's power shortage has increased consumption of coal, the main fuel for local generators, to the point the city's supply will only last for one more week, about half the normal minimum reserve.

To save power, the city has already shut down all small chemical fertilizer manufacturers, and is planning to close other small factories that use large amounts of electricity, said Jiao.

Heavy users, such as fertilizer and steel factories, are also being asked to shift production to nighttime, said Jiao.

The city will also charge cheaper rates for power during non-peak hours to encourage other businesses to voluntarily shift production hours.

Jiao said the government is looking to introduce a long-term system for awarding industrial power users that take part in conservation efforts.

Power shortages are expected to haunt the city for at least the next two years, government officials said yesterday.

(Xinhua News Agency December 4, 2003)