ETU reveals massive gap in Qld coal power maintenance budget
The true cost of maintaining Queensland's coal power stations could be $3.4bn more than budgeted, sparking fears of higher electricity prices for consumers.
Keeping Queensland’s coal-fired power stations running beyond their economic lifespan would cost at least $4.8bn and drive up power prices, the Electrical Trades Union says.
The Queensland government has allocated $1.4bn over five years to maintain energy generators including coal and pumped hydro assets, which ETU state secretary Peter Ong argued grossly underestimated the cost of running coal-fired power stations for decades longer.
“Increasing fuel, maintenance and extending life costs will not put downward pressure on electricity prices,” he said.
“Whilst the rest of the country and indeed the world continues towards a renewable transition, this Bill just kicks the can down the road for Queensland and again leaves energy workers wondering about their future.
“Queensland has gone from leading the way on energy transition to burying our heads in the sand.”
Mr Ong, appearing in front of a parliamentary committee analysing flow-on effects of the Energy Road Map, cited Institute of Energy Economics and Financial Analysis assessment that found keeping eight coal-fired power stations open would cost $4.8bn – $3.4bn more than the government has allocated under its $1.4bn maintenance guarantee.
“This figure grossly underestimates the cost to the Queensland taxpayer over the proposed extended life of these facilities,” he said.
“That’s going to be pushed back on the consumer, it’s going to add to electricity bills … it’s a simple as that”
Committee chair, Liberal National MP Michael Crandon, snapped back: “That’s your opinion, thank you.”
However the $4.8bn figure includes the privately owned Gladstone and Millmerran power stations.
Excluding those, the taxpayer-funded maintenance bill for the six government-owned coal generators is $3.3bn, according to IEEFA analysis.
Mr Ong was accused by the government of “misusing the targets and statistics to mislead the public”.
Member for Caloundra Kendall Morton argued the ETU boss was conflating the four-year maintenance budget with the 10-year maintenance cycle applied to generators.
Mr Ong argued worker wages and conditions could be affected as the Energy Road Map removes the requirement for 54 per cent of energy generation to be publicly owned.
The Energy Road Map was supported by Australian Energy Producers Queensland director Keld Knudsen.
“We welcome the commitment to base policy on economics and engineering,” he said.
Queensland Resources Council policy director Jana Dore said the organisation was seeking clarity on public ownership rules for future energy generation.
Proposed changes to energy legislation commits to 100 per cent public ownership of current assets, but not future assets.
It could affect the requirement for 54 per cent of Queensland’s energy generation to be publicly owned.
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