Cost of power to soar as drought continues
Manufacturing companies fear the drought will see power prices increase by as much as 100 per cent, forcing some to dramatically restructure their workloads and in some cases send work and jobs offshore in a bid to remain competitive. Packaging company Amcor yesterday warned that though it is covered by contracts for short term, many manufacturers who require new energy contracts will see the viability of their operations come under threat. Energy retailers are believed to be offering energy at around $60 per megawatt hour a massive increase from its previous price of $35 per megawatt hour. An example of the cost of power for large manufacturing companies can be seen from Amcor's current power bill (including gas) which is $80 million per year.