A Sydney factory that produces some of Australia’s best-known snacks - including Cheezels and CC’s - has had their gas bill triple overnight.
Mangers of the Smithfield factory said they went from paying $3m a year to $9m annually for gas when they negotiated a new deal after their previous energy wholesaler Weston Energy closed.
Snackbrands, who produce 200 million packets of chips each year, now face a weekly gas bill of $173,000.
The company investigated the use of renewable energy only to discover that generating the power they need would require 250 acres of solar panels.
The business employs 600 people and is located in Minister for Climate Change and Energy Minister Chris Bowen’s electorate.
Company CEO, Paul Musgrave, said the company had no choice but to pass the rise in costs on to Australian consumers.
“It's a lot of coin… a lot of coin for us as a business and ultimately we have to pass that onto consumers because there is no way the business can absorb that in any way shape or form,” he said.
“The price rise of at least 40c a bag is necessary to safeguard the jobs of the factory's 600-plus staff.”
Australia’s electricity prices are predicted to skyrocket by more than 50 per cent in the next 12 months.