Summarised by Centrist
The recent announcement that Winstone Pulp International plans to shut down its Tangiwai sawmill and Karioi pulp mill, cutting over 200 jobs, has Associate Energy Minister Shane Jones sounding the alarm over soaring power prices. The company blamed skyrocketing energy costs, which now make up more than 40 percent of its expenses.
Jones says the high costs of electricity are putting New Zealand’s manufacturing and industrial companies in a “perilous situation.”
Jones described the news as “hideous,” especially given the “stupendously high energy dividends” recently reported by power generation companies.
He accused the ‘gentailers’—the major electricity generators and retailers—of ignoring the national interest and said he is concerned that more businesses could follow Winstone Pulp’s path unless energy costs are addressed.
Ruapehu District Mayor Weston Kirton has called for the government to intervene with subsidies to keep Winstone Pulp operational.
Energy Minister Simeon Brown acknowledged the situation and announced that new data on power margins would be published to ensure transparency and prevent price gouging. However, he said that the government is already working to address the energy crunch, which has been exacerbated by a dry year, light winds, and reduced gas production.
