Mill’s electricity change to affect households

Press, 27 January 1986, Page 15

Mill’s electricity change to affect households

PA Napier The Whirinaki pulp mill has accepted the Government’s offer of direct electricity supply. The Hawke’s Bay Electric Power Board has said that the move could result in price increases of more than 26 per cent for other consumers for the second successive year. The board and Carter Oji Kokusaku Pan Pacific, which runs the mill, have been negotiating for a mutually acceptable price but the talks have now failed.

The board was disappointed that in spite of willingness to continue negotiations Pan Pac had decided instead to accept

the offer by the Minister of Energy, Mr Tizard, for direct supply, said the board’s chairman, Mr Lloyd Duckworth. Carter Oji’s planning and development mahager, Mr Ken Ross, said the rise to other consumers confirmed that the mill had been subsidising other users.

Mr Duckworth said the loss of the $2O million a year from the mill, the board’s biggest customer, would add I per cent to an expected 15.5 per cent rise on April 1. Prices would rise another 10 per cent in October with the advent of the goods and services tax. Last year North Island

customers were hit with average 27 per cent tariff rises when the Government increased the cost of bulk power and increased the concession to South Island users.

One of the board’s biggest remaining customers is the Napier City Electricity Department

The 1 per cent will add about $6 or $7 to the average family bill each year.

The loss of Pan Pac will not cause redundancies.

“The board has a substantial work programme and all staff will be fully committed,” he said.