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The Forum > General Discussion > Manufacturing plants start to close ahead of Carbon tax.

Manufacturing plants start to close ahead of Carbon tax.

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FP,

I was waiting for some idiot to try and challenge me on large scale electricity costs. Well done FP, you won the prize.

The aluminium industry consumes such a huge amount of power, that they buy it at distribution cost levels. These average about $40-%50 per MWhr, but then they go further and purchase the bulk of their power at off peak which is heavily discounted (to enable the big generators to keep spinning) and for which they can pay as little as $20 / MWhr.

If the carbon tax adds $21 /MWhr to the cost, this nearly doubles their energy bill.

With the carbon tax, Aluminium smelting cannot survive and will move off shore. Net carbon savings = zero.
Posted by Shadow Minister, Friday, 25 May 2012 2:13:58 PM
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Talk about a knife edge, If one of your customers goes on holiday, your business will collapse.
We are talking of 1.5 c /kwh average for power.
So where are all these costs going to come from.
So the bloke cutting your hair is going to have to put an extra, quarter of one cent on.
A tomato canning closer @ 175 cans / minute is ?
Tony has done a good job of scare mongering, until the 1.7.2012.
Posted by 579, Friday, 25 May 2012 2:23:57 PM
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Oh my god, is SM on crack cocaine this afternoon? He says if the electricity cost cost is $21, and *IF* carbon pricing adds $21 to this cost, then the cost doubles. Well duh! Of course it doubles *IF* $21 is added to the cost. But, SM forgot an annoying little fact ... the additional costs are 15% for commercial businesses and 19% for industrial businesses, *NOT* 100% as falsely claimed by poor old SM. That 15% -19% can be easily reduced, and totally eliminated, with the mechanisms available and by changing to new technologies (which is the entire purpose of carbon pricing). Domestic electricity cost increases will be very small indeed and totally, 100%, covered by compensation.

Fact = the company's current layoffs were NOT caused by the doubling of their electricity costs, as falsely claimed within the lies of SM.

Poor old SM couldn't even bring himself to click on the educational link I posted on the previous page, in order to educate himself. Ha ha ha, he's a very funny guy.
Posted by FP72E, Friday, 25 May 2012 2:58:48 PM
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Net carbon savings = zero.
Shady Pollie,
Yes, and it'll do absolutely resoundingly nothing for the environment.
So, what are they going to do then for the environment. Do more for themselves as per usual is my guess.
Posted by individual, Friday, 25 May 2012 3:26:50 PM
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I've had a complaint about FP72E's last post and while I don't agree that it is abuse, it is getting close. I hope this conversation veers back closer to politeness or I will make some deletions.

Graham Young(Moderator)
Posted by GrahamY, Friday, 25 May 2012 4:21:02 PM
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Geez Graham, are we reading the same post by FP72E?
SM's last post refers to FP72E as "some idiot", so why shouldn't he have the right of reply both in the substance of what he has to say (on which he is correct) as well as a little reciprocal derision?
Posted by Luciferase, Friday, 25 May 2012 4:49:25 PM
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