Hazelwood power station closure costs Victoria $87.5m in lost royalties
THE closure of the Hazelwood power station has left the Victorian Government out of pocket by $87.5 million in lost royalty payments.
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THE closure of the Hazelwood power station has left the state government out of pocket by $87.5 million.
Hazelwood, which closed in March, leaving hundreds of workers jobless, would have handed over the royalty payments over the next three years had it stayed open.
New figures provided to a Budget estimates inquiry reveal the revenue from the brown coal royalty tax is expected to fall by $27 million in 2017-18, $28 million in 2018-19 and $28 million in 2019-20.
The Budget blowout comes on top of the $266 million rescue fund the Andrews government has committed to the Latrobe Valley.
The figures have renewed calls for the government to set closure dates for the state’s remaining power stations, so there is certainty for revenue as well as the workers and affected communities.
The owner of Hazelwood, French company Engie, gave less than five months’ notice before the power station’s closure.
The state Opposition blamed Hazelwood’s closure on the Andrews government’s decision to triple the brown coal royalty rate.
The Opposition’s energy spokesman, David Southwick, said the government should have never raised the tax.
“Daniel Andrews gave the Hazelwood power station an ultimatum: shut down or pay $87.5 million in a new coal tax,” Mr Southwick said.
“Because of Daniel Andrews’ tax grab, Victoria’s energy supply has been slashed by 22 per cent and annual energy bills have already soared by an average of $300 per household.”
Victorian government spokesman Andrew Nelson said it was “grossly misleading” to suggest the change in the royalty rate was a factor in Hazelwood’s closure.
He said the closure of Hazelwood, which provided about 22 per cent of Victoria’s energy supply, would be partially offset by the other three coal-fired power stations in the Latrobe Valley increasing their generation.
Greens leader Greg Barber said dates needed to be set for the closure of the other Latrobe Valley power stations.
Mr Barber said the Yallourn power station would be the next plant to close.
“Once the new renewables come on line, electricity prices will go down and it is just a matter of time until Yallourn closes,” Mr Barber said.
“The government needs a plan for not just how we generate power, but the poles and wires as well. We need to upgrade our powerlines and lay out the closure dates for coal-fired power stations so that investors, workers and local communities are able to take some control of their future.”
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