Orora has plans to cut energy bill

PACKAGING group Orora has warned it expects its power bill to rise as much as $8 million in each of the next two halves amid surging electricity prices.

Orora shares rose yesterday after it reported a lift in profit and revenue, but the group said it was still concerned about the impact of power prices on earnings at its New South Wales recycled paper mill.

“The Australian electricity market is expected to continue to be volatile for the foreseeable future and presents further potential downside risk,” it said in a statement.

Orora said it had various initiatives to reduce energy consumption, including a new $23 million secondary water treatment plant – due to be completed by June – which will generate biogas to be converted into electricity.

The company has also signed a long-term power deal with renewable energy provider Pacific Hydro to supply wind-generated electricity to its South Australia operations.

“Renewable energy represents a competitively priced and sustainable energy source for the business,” Orora said.

“Contracting directly with Pacific Hydro, Orora will reduce the businesses exposure to fluctuating prices of the wholesale energy market.”

The company said it would keep assessing further energy efficiency projects and supply options.

Orora shares rallied 3.1 per cent, or 10c, yesterday to $3.29.