WA strikes deal to secure future energy

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Image credit: www.premiercoal.com.au

Energy Minister Mike Nahan has announced a renegotiated agreement between state-owned Synergy and Premier Coal that will secure the State’s future coal requirements, stabilise the industry in the Collie basin and protect jobs to the future of the region’s economy.

Image credit: www.premiercoal.com.au
Image credit: www.premiercoal.com.au

He said Synergy would pay more for its coal supplies, but refused to disclose the terms of the deal due to the confidentiality agreement between the parties.

“Electricity prices will not increase as a result of this decision today,” he said.

According to the media statement issued by Minister Nahan, any increase in the annual subsidy paid to Synergy would be offset by the benefits of the Liberal National Government’s decision to re-integrate the State’s electricity generation and retail utilities, and not through an immediate increase in regulated electricity prices.

“The State Government through Synergy has worked hard with the owners of Premier Coal to finalise an amended supply agreement that is critical to the future of the State’s economic development and the security of electricity generation,” he said.

Adertisement

“While alternative energy sources are available, including renewable generation which has been developed at unprecedented levels by the Liberal National Government since 2008, coal is significantly cheaper than the alternatives.”

Dr Nahan said the original coal supply arrangement, signed in 2005 by a Labor Government, was simply unsustainable and the Liberal National Government had been forced to renegotiate a contract that would now provide energy security for the State and jobs in Collie.

“We are committed to the security of Western Australia’s future energy supply and have pursued the best course of action to ensure that this occurs,” he said.