Abnormal QLD power prices force smelter production cut

By a staff reporter

The Boyne Aluminium Smelter (BSL) in Gladstone, Queensland has announced it will be cutting back production by 14,000 tonnes from January to the end of March, according to the Gladstone Observer.

BSL general manager Joe Rea, blamed unusually high electricity prices in Queensland for the decision.

He told the Gladstone Observer, "It is an ongoing concern for our business that electricity prices in Queensland are significantly higher than other states in Australia ...Electricity prices in Queensland are currently 20% more expensive here than in New South Wales and 30% more expensive than in Victoria."

As has been highlighted by Climate Spectator, Queensland wholesale electricity market prices have been unusually high in recent times even though it has a large overhang of excess power generation capacity and can not be explained by the introduction of the carbon price.  This has been blamed on a combination of a temporary transmission line constraint in Queensland, plus the fact the Newman Government chose to consolidate its three government-owned electricity generator companies into just two. These two companies dominate Queensland’s wholesale electricity market supply.

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