Power price to smelter
Sir, — The suggested method of escalating the electric power prices to the Fletcher - C.S.R. - Alusuisse smelter will not ensure parity with the international price of energy, but allow a continuously lower price. By tying the future power prices locally to the movements in world aluminium prices, we invite the international aluminium producers to close down their operations in the highest energy cost sites. New Zealand will then supply them with power at an ever-decreasing cost. relative to other sources of energy, because only the lowest cost energy sources will come into consideration. If the Government intends our energy input to the smelter(s) to have a cost relationship to an international energy cost, they should avoid an intermediate link and relate it to the O.P.E.C. oil price. — Yours, etc., • '
> R. A. SMITHAM. August 27, 1980.
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Press, 29 August 1980, Page 12
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138Power price to smelter Press, 29 August 1980, Page 12
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