Hawke's Bay pulp manufacturer Pan Pac estimates it is losing $100,000 a day in sales as it cuts power consumption in the face of soaring spot prices.
Its comments follow an announcement by New Zealand Aluminium Smelters last week that it was cutting production at its Tiwai Point
smelter by about 5 per cent as a result of rising power prices.
Hydro lake levels around 60 to 65 per cent of average, significantly lower than normal because of drought, are pushing up wholesale power prices.
The smelter's reduction of 30 megawatts of power demand corresponded to a cut in aluminium production of about 1400 tonnes a month, the company said.
At Pan Pac, managing director Doug Ducker said he was concerned some of the profits in the electricity market had not gone back into more electricity generation, which would have kept pricing stable.
"The Government itself has taken substantial revenues by way of its ownership of SOEs," The Dominion Post reported his saying.
Electricity was a social need "that should be provided at an appropriate cost, reflecting the costs of supply", he said.
Winstone Pulp Ohakune mill general manager Paul Saunders said that operation's power bill was up 35 per cent in the first three months of the year.
Last week Transpower chief executive Patrick Strange said continued dry conditions or the loss of a major generating plant would mean further electricity supply contingency measures would have to be taken.
Generators and retailers were talking to larger customers about reducing their electricity usage if needed and planning had started for a public awareness campaign.
The industry called on the public to be prudent and switch off unnecessary appliances while not in use.
- NZPA
