Core Viewpoint - The current electricity trading market in Jiangsu is experiencing significant activity, with many electricity sales companies quoting irrationally low prices, misleading large industrial users regarding electricity purchase and sale prices, and exploiting information asymmetry to encourage a "lowest price wins" mentality among users [1] Group 1: Risks from Extremely Low Bids - The most direct and severe risk is contract performance and power supply interruption, as electricity sales companies may face bankruptcy due to unsustainable low pricing, leading to potential supply disruptions for users [2][4] - The average monthly centralized bidding prices have fluctuated significantly since September, with prices recorded at 0.319, 0.340, and 0.355 yuan/kWh, indicating high volatility [2] - If a sales company goes bankrupt, users may be forced into a situation where they are subject to high "guaranteed supply" prices, which can be 1.5 times higher than normal market rates [4] Group 2: Cost Settlement and Price Rebound Risks - Hidden fees and clauses may be embedded in contracts, such as additional service charges that are not immediately apparent, and penalties for discrepancies in electricity load forecasts that could lead to significant costs for users [5] - Sales companies may employ a "low-price trap" strategy, initially offering low prices to capture market share, only to significantly raise prices upon contract renewal, exploiting user dependency on their services [5] Group 3: Business Compliance and Legal Dispute Risks - Many users lack awareness of their account management credentials in the Jiangsu electricity trading center, effectively relinquishing control over their accounts [7] - Collaborating with companies that engage in malicious competition raises fundamental credit risks, as their long-term operational intentions are questionable [7] - Legal disputes may arise if sales companies fail to fulfill contracts or attempt to impose unreasonable fees, leading to time-consuming litigation processes that could result in irreparable business interruptions for users [7] Group 4: Recommendations for Users - In 2026, the electricity sales market is expected to be highly competitive, with price fluctuations and policy adjustments, making it crucial for users to prioritize stability and reputation over aggressive pricing when selecting sales partners [8] - Users should conduct thorough evaluations of quotes against publicly available wholesale electricity prices to assess their reasonableness, as prices significantly below cost are unsustainable [8] - Establishing long-term strategic partnerships with reliable sales companies is more important than chasing short-term price differences [8]