Industrial prices lowest in Chch

Press, 17 May 1989, Page 3

Industrial prices lowest in Chch

Christchurch has the lowest industrial power prices of any large city in New Zealand, according to an international survey released yesterday. Christchurch’s average unit cost to industrial and commercial comsumers is 8.04 c a kilowatt. The managing director of the Sydneybased energy analysts who completed the survey, says that is good news for established and potential businesses in the city.

Mr Eddie Realf, of N.U.S. International Pty, Ltd, noted that Christ-

church had held its industrial rate for the last 12 months. “This has to be good news for local businesses. It should also prove attractive to companies considering establishing new ventures in the city, particularly energy-intensive ones.” Mr Realf credited the low rates in part to the amalgamation as Southpower of the Central Canterbury Electric Power Board and the Christchurch Municipal Electricity Department. “This would naturally have reduced administration overheads and helped maintain prices at 1988 levels,” he said.

The survey lists New Zealand’s most expensive city as Auckland. It has an average unit price of 8.89 c a kilowatt, higher than the national average of 8.43 c and Wellington’s 8.39 c. The inter-city comparisons were made as part of the annual survey which examined power prices in 16 countries. Sweden, the Netherlands and Canada ranked cheaper than New Zealand for industrial prices. The survey tracked changes in prices from country to country by using a typical manufacturing consumer. “A large proportion of New Zealand’s

industrial and commercial consumers would fit into this model,” Mr Realf said. New Zealand was one of only two countries surveyed which recorded a fall in prices over the last 12 months. Mr Realf said this crowned Electricorp’s first full year of operations as a private corporation. It had achieved a 1.7 per cent decrease in industrial and commercial tariffs. Australia ranked as the eleventh most expensive. country with an average unit cost of 9.53 c. The most expensive was Japan at 17.72 c.