Jun 22, 2008 -- The Australian Financial Review - ABIX

Many of Australia's largest companies are delaying projects due to rises in energy costs of between 25% and 100%. A June 2008 survey carried out by Energy Users Australia found that electricity and gas prices are having a major impact on the profit margins of large companies, and causing them to make guarded investment and planning decisions. Many are experiencing delays; Alcoa has not secured affordable electricity for an upgrade at its $A1.2 billion aluminium smelter in Victoria. Western Australian companies face an increasingly difficult situation given that 30% of its gas supply was cut off following a recent explosion at a gas processing plant.

Publication Date: 23 June 2008

News Provided By