Tony Clifford: Pan Pac Forest Products Managing Director on the impact of high electricity costs on their their export pulp production

Heather du Plessis-Allan Drive

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Pan Pac Forest Products says part of its operations could be on hold for another two months.

The Napier mill says a major spike in electricity prices since Saturday has made its export pulp production unviable.

Managing director Tony Clifford says the business can't generate profit with the cost of electricity at the current level.

He told Heather du Plessis Allan either it has to rain a lot for more hydro power, or Taupo's Tauhara plant needs to come online - which might not be until October.

He says Pan Pac has a power purchasing agreement with Tauhara and currently it's having problems, so Pan Pac is fully exposed to the wholesale electricity market.

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