Tomago steel processing plant Milltech is being hit hard by rising power prices. An increase of 160% in electricity costs will see their energy bill rise an extra $1.2 million over the next three years.
Member for Port Stephens Kate Washington said that it's not just homes, but businesses feeling the pinch of increased electricity bills.
Since most Hunter industries heavily rely on electricity, Washington says the costs are mounting.
"It was really stark to see and understand the high energy use of our manufacturers and the impact of increased prices like this."
"This is hitting businesses really hard, and particularly our heavy manufacturing industries here in the Hunter are really going to feel the brunt of this."
The cost of energy isn't the only thing putting pressure on local businesses. International competition with lower production costs means local businesses often have to absorb price hikes rather than pass them on to the consumer.
"They can’t put their prices up and keep absorbing increased energy costs, increased input costs, and their competitors are largely from overseas. Their business model is at risk.”
"My biggest fear is the flow-on impact of this on jobs for the Hunter. We can’t afford to go backwards in terms of our employment figures.”
 |
| Image http://milltechmartinbright.com/ |
