NZ faces power shortage for coming winter
New Zealand, whose electricity prices tripled in six years, risks a
third power shortage since 2000 that may cut production from factories
including an aluminium smelter run by Rio Tinto Group, according to
company executives on 2 March, reported The Australian Financial Review (3/3/2006, p.54).
Comalco considers production cuts: Comalco, a Rio Tinto unit,
may deepen the 3 per cent production cut in November at the Tiwai Point
smelter after a meeting next week with power supplier Meridian Energy,
Comalco NZ managing director Tom Campbell said.
Biggest electricity user: The smelter is the biggest user of the
nation’s electricity, more than 60 per cent of which is supplied from
hydro-power dams. Comalco and Fonterra, the world’s biggest dairy
exporter, are among businesses that may pay higher power prices.
Hydro lake levels down: Economic growth has increased demand as
a natural gas shortage delays construction of new generators. Prices
also surged last week after the nation’s hydro lake levels fell to less
than 75 per cent of their average for February.
Call for energy savings campaign: “There is a significant risk
of a crisis this winter,” Campbell said on 2 March. The government
“should start an energy savings campaign for 5 to 10 per cent of demand
right away and Comalco would need to be part of that”.