Federal Energy Minister Angus Taylor has lashed Origin Energy’s shock decision to close its Eraring coal-fired power station seven years earlier than expected, saying it was “disappointing” and could risk higher prices and instability in the power grid.

Coming only a week after AGL Energy announced the early exit of its Bayswater and Loy Yang A coal power stations, Mr Taylor said the proposed 2025 closure of Eraring – Australia’s largest coal power station – will leave a “considerable gap” in the National Electricity Market, as it was responsible for 20 per cent of NSW’s generation output.