In July, as numerous regions across the nation entered the peak summer electricity consumption period, compounded by a sharp increase in AI-related demand, China's overall electricity demand has surged notably. However, not all segments within the electricity industry chain are reaping the benefits of this upward trend; electricity retailers, in particular, are undergoing a significant industry shakeout. Recently, several regions have issued successive announcements regarding the withdrawal of electricity retailers from the power market, involving scores of enterprises. A journalist investigation has revealed that industry-wide losses and diminishing performance capabilities are the primary reasons behind this trend. The retail market serves as a vital conduit for end-users to engage in the electricity market, with electricity retailers acting as key intermediaries linking the wholesale and retail sectors. As the proportion of market-oriented electricity trading expands and electricity price volatility intensifies, electricity retailers are encountering scenarios where "selling one unit of electricity results in a loss equivalent to that unit's cost," with some companies even suffering losses equivalent to their annual profits within a single month. This has further expedited the industry shakeout. Beneath this phenomenon lie objective factors, such as the rise in primary energy prices driving up spot electricity prices, as well as misjudgments by electricity retailers regarding electricity price trends. Additionally, it exposes institutional flaws, including the "low-price internal competition" model and imperfect market regulations.