POWER HIKE IS A SHOCKER

LAMBERTS Produce is the latest business to speak out about soaring electricity prices in North Queensland, with the store facing a 75 per cent increase in power costs.

Owner Michael Burge said Lamberts had been on a power tender for three years, which was about to end.

His power supplier has warned him to expect a price increase of about 75 per cent, bringing his monthly $ 12,000 power bill up to nearly $ 20,000.

Mr Burge, who employs 42 staff, said he was concerned he would have to lay off employees to try to offset the increase in power costs.

“I don’t know how we will afford that and absorb it into our business,” he said.

“I think we’ll have to put staff off, that’s the only way I can see us being able to deal with it.

“It’s one of those unfortunate things that comes with managing the costs within a business and staff are a big percentage of the cost of running a business day to day.

“The other outcome would be higher prices but that’s probably not an option because it’s already a tight market in Townsville and competition is strong.

“It’s pretty much impossible to absorb that sort of cost.”

Lamberts is one of many North Queensland business- es being crippled by the cost of power.

GFB Fisheries, which has fish farms in Kelso and Bowen, have had their monthly power bill triple in five years from $ 50,618.55 in 2012 to $ 157,149.54 this year.

The company may shelve expansion plans and invest in solar to try to bring down their power costs.

Glencore has also said its Townsville copper refinery is under threat from rising power costs, with electricity making up 35 per cent of their total operating costs.

The mining giant has writ- ten to the State and Federal governments stating it couldn’t guarantee the future of its Townsville and Mount Isa facilities.

Mr Burge said Lamberts was thinking of using solar to meet some of its needs.

However, solar supplies power for only 10 and 12 hours a day and with Lamberts needing a 24- hour supply, Mr Burge will still be forced to rely on the grid.

“I think personally the Government should come and talk to us and give us a better understanding of why power prices are rising and what makes up the cost of power,” he said.

“We need to understand why it’s happened and what the Government intends to do about it.”

North Queensland businesses are slugged an extra 30 to 40 per cent on power bills compared to businesses in the southeast as electricity is lost in transmission, due to the closest base- load power station being near Gladstone.