NSW energy crisis affects business

Large businesses such as Tomago Aluminium in the Hunter Valley are the backbone of New South Wales’ economy providing more than 900 jobs and hundreds more in contract services.

But the ridiculous rising energy costs are hurting their business. Electricity is a major cost for Tomago Aluminium and they have been working hard to be more energy efficient and reduce their consumption.

In February this year the country experienced an electricity price hike to $13,000 Kwh during the hot weather. Aluminium Smelters are very large consumers of electricity and experiencing a price hike of this magnitude could see the smelter close. If NSW were to have the same issue that South Australia experienced the Smelter would possible shut down and never restart, thus depriving the Hunter and NSW of a major export earning business ($1.5billion) and thousands of job losses to the Hunter economy.

These huge power increases put their businesses and the jobs of those they employ at risk. They prevent Tomago Aluminium from expanding and employing more people.

NSW is an energy powerhouse with our natural resources in the Hunter Valley. With our coal reserves, we should have some of the lowest energy production costs in the world. But our coal is exported overseas to provide cheap and reliable energy for coal fired power stations to provide cheap power to businesses in other countries, while we are hit with rising power prices. Australia is now the laughing stock of modern economies with the highest power costs.

The Federal and State Governments need to put a stop to the Cartel behavior and price gouging by the Generators and to put a sensible policy cap on peak load charges instead of the ludicrous $13,000. It is incumbent on the ACCC to investigate the behavior of the Generators.

Experts have repeatedly warned that our zero emissions target threatens to make New South Wales the new South Australia, with blackouts, job losses and businesses leaving.

NSW needs to end its target of net-zero carbon emissions by 2050 and concentrate on cost savings Vs emissions before we send the business community broke.

New South Wales needs a sensible energy mix that keeps ours lights on, our business costs down and protects our environment. Without it, businesses like Tomago Aluminium can’t grow and support a strong New South Wales economy.

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