Australia: Cotton industry to fight electricity price hike
25/03/2013
This follows a 10% rise in electricity prices for farmers in 2012-13.
Michael Murray, Cotton Australia’s policy manager for Queensland & Water, said: “Since 2000, electricity prices have risen by 250%, or an average of 19% per annum. These rises are completely unjustifiable given annual inflation has been around 3%.”
The proposed increase in electricity costs is not matched by rising commodity prices. The average price per bale for cotton since 1990 was $461, and today a bale of cotton fetches below $450 on the export market, according to the industry body.
“Larger users were facing the potential of immediate electricity price increases in the order of 250%, which would have made electricity use completely non-viable for irrigators,” said Mr Murray.
“But what we have now is death by a thousand cuts - all irrigators will face these 17.5% increases, and with a history of massive year-on-year increases it is hard see how any irrigation users will be able to afford to use electricity in the near to medium term. We urge cotton growers to contact their local members, the minister and premier and demand action to put an end to these price hikes.”
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