Left in the dark

A Mooroopna business leader is worried about the future of competitive industries in regional Victoria after he experienced a large spike in his power bills.

Gouge Linen owner Rob Priestly said after going onto a new electricity contract for his business he realised the delivered cost of power on his bills had risen by between 70 to 80 per cent from two years ago.

Victorian Nationals leader Peter Walsh
says he hears everyday from businesses
complaining about spikes in power prices.

Although the price rise does not threaten the sustainability of his business, which employs 150 people in Mooroopna, he expressed concern about similar rises could hit other large producers.

‘‘Everybody in our industry is in the same boat,’’ Mr Priestly.

‘‘I’m more worried about the impact on the broader community and on food manufacturing.’’

He said unlike his business, which did not face international competition, food manufacturers had to compete against foreign competitors which did not have large costs for power.

He would like to see the Victorian Government introduce policies to ease costs to make it easier for bigger businesses to compete in the global marketplace. It was a call echoed by Victorian Nationals leader Peter Walsh who had heard stories of big businesses hit with large power bill increases almost every day.

‘‘The prices have really spiked in the last six months,’’ Mr Walsh said.

‘‘Once there was speculation about the closure of Hazelwood there was a spike and once it closed it went higher again.’’

He listed dairy facilities, Kagome, SPC and farmers who use large cooling facilities and even hospitals would be the types of businesses hit with larger power bills.

‘‘Victoria has gone from a net exporter to a net importer of power,’’ he said.

He took aim at the State Government for much of the increases, and said we needed more than an increase in renewable energy to stay competitive.

‘‘There needs to be a serious investigation as to how Victoria brings in the next generation of baseload power generation,’’ he said.

Although he believed renewable energy had a place in the state, he was adamant coal fired power stations were still very important.

But he warned under current conditions, including a commitment for a state-based renewable energy target, energy companies would be reluctant to invest in baseload power generation.

‘‘Our manufacturing sector has developed with cheap power, our policy setting have to change,’’ he said.

This story  - “Left in the dark” - written by Barclay White was published in today’s Shepparton News.