Chapter 504 - 252: Electricity Promotion (3)
For factories, this is extremely important. With electric bulbs, workers’ shifts can be extended into the late night, and factories can run two shifts to improve production efficiency.
This not only increases the total production value of industrial areas but also allows smaller factories to earn more money.
Although this sacrifices some of the workers’ rest time, under the protection of Spanish labor laws, these workers can receive their due overtime pay, which is quite beneficial for them.
After all, in other European countries, many workers have to work overtime without receiving any extra pay. Some can’t even receive their full basic salary.
For capitalists, finding every possible way to deduct workers’ salaries is simply taken for granted. The wages withheld from workers will all end up in the pockets of the capitalists, and which capitalist would complain about not having enough money?
Sure enough, after the Barcelona City Government formally established the power company, factory owners approached the newly formed company to inquire about the prices of electric bulbs and connecting lines.
Although the Barcelona Power Company was established by the city government, the Spanish National Power Company is actually the major shareholder. The Barcelona City Government holds only 40% of the shares, while the remaining 60% belongs to the Spanish National Power Company.
As a result, the electricity price in Barcelona is the same as in Madrid, at 2.5 Pesseta per kilowatt-hour.
At the initial stage of the power company’s formation, such low electricity rates are definitely running at a loss. Due to the limited number of electricity users, a considerable portion of the electricity generated by power plants will be wasted, yet power generation requires funding.
Fortunately, the factory owners in Barcelona are indeed supportive. Ever since the establishment of the Barcelona Power Company, factory owners have been continuously seeking cooperation with the company.
Perhaps inspired by the success of Madrid’s Nocturnal City, in less than a week, there are already more than 20 factories that opted to connect their circuits and purchase electric bulbs.
These factories are mainly medium to large-sized factories in industrial areas, employing hundreds or even thousands of people.
The reason for purchasing electric bulbs is simple: the lighting can improve the factory’s work efficiency, allowing factory owners to earn more money.
Don’t underestimate these more than 20 factories; each factory purchases dozens of bulbs, adding up to a total purchase quantity reaching several hundred bulbs.
Moreover, compared to the electricity usage duration of ordinary citizens, factories use electricity for longer hours.
Add to that the price difference between industrial and residential electricity rates, making partnerships with factories more profitable than with ordinary citizens.
Currently, the residential electricity price in Spain is 2.5 Pesseta per kilowatt-hour, with industrial electricity costs not differing much, but there might be certain fluctuations in specific situations.
Since electricity needs promotion, the industrial electricity price is also kept at a relatively low level. Once electricity is widely applied, the cost of industrial electricity will definitely increase.
After all, industrial electricity consumption is the major part; if the price remains low, only the power company would suffer losses.
Besides the Barcelona Power Company’s cooperation with factories, the Madrid Power Company is also promoting electric lighting to factories in the suburbs.
The total number of factories in Madrid is fewer than in Barcelona, but the owners behind Madrid’s factories are mostly powerful capitalists or aristocrats.
Aristocrats certainly understand the role of electric bulbs, and to improve factory efficiency, they’re willing to purchase them.
Even in Madrid, there are more factories finalizing orders with the power company than in Barcelona, reaching a total of 30 factories.
Nevertheless, such numbers aren’t surprising, given the strength of factory owners around Madrid. Moreover, since Carlo’s factories almost immediately signed orders with the power company, it made the introduction of electricity in Madrid appear more prevalent.
Carlo’s steel mills now have two major sites, one in Madrid and the other in Barcelona. Both the Madrid Royal Steel Factory and the Barcelona Royal Steel Factory have introduced electricity and installed at least a hundred bulbs each.
Furthermore, a significant portion of the bulbs purchased by the steel mills are 35-watt bulbs, which are more expensive and naturally provide higher brightness.
Some smaller factories purchase 15-watt bulbs, which can also be used for lighting, but their brightness can’t be compared to the 35-watt bulbs.
However, as the saying goes, "something gained, something lost," 15-watt bulbs, although lower in brightness, also consume less power, so factory owners still need to consider electricity costs.
Neither the Madrid nor Barcelona power companies have considered the electricity demand of rural areas and small cities.
After all, the current electricity price is unaffordable for ordinary people, and even if small cities have electricity consumers, the numbers certainly won’t be high.
This is also an unavoidable issue. Before the cost of electricity is significantly reduced, electricity is destined to be a privilege enjoyed by only a small group of people.
To enable most ordinary people to enjoy the convenience of electricity, it would take at least several decades.
Even in later generations, many regions still don’t have access to electricity. After all, not all countries can afford the electricity demand in rural areas with small populations.
Setting up lines and maintaining electricity supply involves costs, and providing electricity to sparsely populated rural areas is evidently a loss-making endeavor.
In an era where everyone can enjoy the convenience of electricity, we should also thank the policies and governments that allow both urban and rural populations access to electricity.
But in this era, it’s completely impossible for everyone to use electricity. Over the past month or more in Madrid’s Nocturnal City, less than a thousand households in Madrid City are willing to connect to electricity, translating to just a few thousand people.
Madrid’s population exceeds 500,000, and these few thousand people account for only one percent of Madrid’s population.
This aligns with the initial estimates of the power company. Across Spain, only less than a tenth of the population can afford electricity; even in the Spanish capital, Madrid, not even 10,000 households will be able to connect and use electricity in the coming years.
These include many nobles and capitalists. If only civilians are counted, the numbers would be even smaller, pitifully so.