One of WA’s electricity generators says it could be forced to dump plans to build two power stations unless the Federal Government drastically rewrites its planned carbon tax.
Griffin Energy told the Prime Minister’s office this week introducing the tax would trigger a “review event” of its already stretched financing and could leave the company in breach of its debt agreements with banks.
Griffin Energy, which supplies about 18 per cent of the State’s power, says the Government’s refusal to grant it compensation would place its two existing coal-fired plants under severe strain and would probably see financiers baulk at funding the new plants.
The company was sold to a Japanese consortium after the collapse of failed tycoon Ric Stowe’s coal and energy empire last year, but that deal has been in limbo amid a dispute with Indian company Lanco Infratech over supply of coal to the power stations.
Griffin Energy general manager Wayne Trumble said it made no sense that the Gillard Government’s carbon tax compensated inefficient brown coal-fired plants but not cleaner and more efficient black coal-fired plants Griffin operated.
He said if Griffin was unable to build the power stations, the State Government would be forced to extend the life of older and more inefficient plants in Kwinana, resulting in a rise in WA’s net emissions.
Griffin’s two operating plants - Bluewaters 1 and 2 - are in Collie.
It has received environmental approvals to build Bluewaters 3 and 4 but the final decision to go ahead with construction is yet to be made.
Mr Trumble said he got little sympathy when he met staff in Prime Minister Julia Gillard’s office on Tuesday.
WA Liberal Senator Mathias Cormann said WA’s black coal power plants should get special treatment because the State was not part of the national electricity grid and had only limited options from where to draw power.
“Incredibly, by putting the viability of the newest and cleanest coal-fired power stations at risk, such as Bluewaters 1 and 2, Labor’s carbon tax will cause emissions in WA to go up, not down,” he said.
Finance Minister Penny Wong said the point of the carbon tax scheme was to help the most inefficient operators - not those that were already efficient.
