Power Prices Will Bankrupt Companies

NewsRoom.co.nz Agency Story at 7:22am, 23rd August 2001

Business New Zealand has warned of job losses and company collapses as a result of soaring power prices.

Increasing numbers of organisations are facing problems as their supply contracts expire and they have to choose between buying on the volatile spot market, or signing up to new, high-priced long term contracts.

Business New Zealand chief executive Simon Carlaw said companies and institutions were learning the hard lessons of a volatile electricity market.

He said there will be some damage while these lessons are learned because it was not possible to double the price of electricity and walk away unscathed.

Mr Carlaw said he expected the smaller businesses to be worst affected because and he believed there would be some that are forced to shed staff or even close down as a result.

Schools, hospitals, hotels and rest homes are among those who say they are now facing bills that are double or even treble their previous amounts.

Wellington High School has pointed out that its latest monthly power bill was more than $20,000 compared to just under $7,000 for the month of June, according to the Dominion newspaper.

© NewsRoom 2001

http://www.newsroom.co.nz/story/61454-99999.html

-- Martin Thompson (mthom1927@aol.com), August 23, 2001