Power prices rise in NZ

Power prices rise in NZUnseasonably high power prices have forced New Zealand's biggest consumer of electricity to cut production.

The company that produces major Aluminium for the country, New Zealand Aluminium Smelters situated in Bluff would now be producing 1500 tonnes of aluminium per month lesser as it reduced its electricity consumption by 5%.

Jason Franklin, the commercial manager, believes that the rising of wholesale prices at such a swift speed, is a matter of concern. These were the levels that were in 2008 winters, at a high.

The prices seemed confusing to Franklin, as he said that the hydro lakes were above the average height during this period of the year. Since the end of November the Electricity Authority has been looking at hiking the prices of wholesale prices of electricity.

Energy and Resources Minister Gerry Brownlee, has been called upon by an electric lobby group, for putting pressure on these power creators for reducing electricity price.

The lobby group is looking forward to the reduction in electricity prices, failing to which there will be production cuts in other sectors as well affecting the economy adversely.