There needs to be more clarity over where electricity prices are headed to ensure the future viability of major employers like Bell Bay Aluminium (BBA), Tasmanian Minerals, Manufacturing and Energy Council chief executive Ray Mostogl says.

The state government has announced that the current 10-year power supply contract between the Bell Bay smelter, owned by parent company Rio Tinto, and Hydro Tasmania will be extended by 12 months to allow both sides more time to negotiate a longer-term agreement .

BBA has stated that Hydro's offer for the new 10-year agreement is commercially unviable for the business.

It is believed that lowering the offer would mean that Hydro could potentially take a loss from the cost of supplying power to the smelter.

The state government wants the federal gov

See Full Page