High cost electricity threatens future viability of Portland aluminium smelter

A major shareholder of the Portland aluminium smelter has reportedly revealed that the high cost of electricity is threatening the future viability of the plant.

According to Alumina Limited managing director Mike Ferraro’s report to The Australian Financial Review, “Prices (for electricity) have fallen because of renewables coming on stream, but it still needs to continue to fall to achieve the sort of returns that we need to achieve to keep the facility operating.”

Member for South West Coast Roma Britnell is of the opinion that high power prices are the biggest issue that businesses across Victoria are suffering from, especially the energy intensive industries like the Portland smelter.

She said the state government should have made power more affordable for the Portland smelter so that it could operate smoothly without curbing any job.

Some are even of the opinion that the state Labor Government seems to be doing little to address the problem of soaring power prices.

But the Member for Wannon Dan Tehan said he was advocating for a reduction in electricity prices.

"One of the key commitments we took to the election was to do everything we could to put downward pressure on electricity prices because it impacts all businesses right across the region," Mr. Tehan said.

An Alcoa spokeswoman said the Portland smelter was a well-run facility and stayed always focused on identifying ways to increase its global competitiveness.

She also said that now the goal is to establish a long-term solution for the smelter in the interest of the employees and the local community.

Glenelg Shire mayor Anita Rank, however, refused to comment, saying there was no issue at the smelter.