Gas price hikes force metal processors to the brink
Faced with a doubling in natural gas prices this year and a power bill that is also spiralling higher, David Karney is worried not just for the future of his metals treatment business but that entire parts of the manufacturing sector face wipe-out.
Mr Karney, general manager of Ace Metal Treatment Services south-east of Melbourne, said gas and electricity price increases for the energy-intensive sector had to be passed on to customers, who could instead turn to imported products.
The latest prices being offered by Ace's gas supplier, AGL Energy, of around $20 a gigajoule, three times higher than it was paying last year, would cause Ace to "shut the doors", he said. Power costs have meanwhile surged 20-30 per cent after Ace was slugged by a "summer demand incentive charge" by its network provider.
Wednesday, May 03, 2017
Subscribe to weekly updates
- Emissions Reduction Fund the great survivor of Australia's climate policy
- S&P's sobering warning on energy policy vacuum
- Vintage Energy aims to 'make a difference' in east coast gas supply
- Direct Action back on the agenda-Graham Lloyd
- Origin Energy to cut power bills as it ‘turns the corner’ on prices
- Queensland could be 90% renewable by 2030 – with right policy settings
- Coal shows resilience in global comeback
- How the NSW energy grid almost went dark last week
- Trevor St Baker backs Angus Taylor on renewables
- Wholesale energy prices have spiked as government split over policy