‘Very negligible’: Premier plays down explosion effect on power prices

The news

Not only is Queensland’s premier adamant that an industrial blast at the Callide power station has not caused electricity prices to explode, he has offered a tongue-in-cheek hypothetical as to what will happen when the plant is fully operational again.

“To those who have claimed that these issues have caused skyrocketing prices, well, I look forward to them welcoming in August the plummeting of prices when all of these generators are back online,” Steven Miles told journalists in Brisbane on Wednesday.

Queensland Premier Steven Miles and Energy Minister Mick de Brenni – one of two shareholding ministers in government-owned energy generator CS Energy with Treasurer Cameron Dick.Credit: Matt Dennien

Why it matters

The comments follow Tuesday’s release of long-awaited draft findings from an investigation commissioned by the power station’s partial state owner, CS Energy, after a turbine exploded at the plant in 2021.

Published amid court action involving the private part-owner, it detailed systemic safety focus failures, maintenance concerns, and direction from relevant ministers to find savings and manage debt.

With an election in October, the LNP has sharpened attacks around the incident’s effect on increased prices, with the station set to return to full capacity by August after several delays.

While the incident has been pointed to by independent bodies as one of many factors likely to have contributed to Queensland price increases, its direct effect has not been quantified.

What they said

“The advice to us is that it has been very, very negligible,” Miles said of the Callide incident’s effect on prices.

“It’s very hard to differentiate factors like that, as well as wholesale prices versus retail prices, but … what we know is that Queensland has amongst the lowest energy prices in the country.”

Miles said he was amused at the LNP’s “cover-up” accusations given he had been working to get any element of the report released since becoming premier, and did “as soon as it was legally possible”.

He also said ministerial shareholder mandates to CS Energy were given to all state-owned energy generating companies, “and these cultural issues have really only been identified at CS Energy”.

Another perspective

At a media conference of their own in Brisbane on Wednesday, LNP MPs accused the government of imposing cost-saving measures on CS Energy while drawing from its revenue to help its budget.

Leader David Crisafulli called for Energy Minister Mick de Brenni to be sacked and the government to release the most recent 2020 mandate to the company from him and Treasurer Cameron Dick.

“The treasurer’s cost-cutting strategies lit the fuse for the Callide explosion that drove up power prices for Queenslanders,” the LNP’s treasury spokesperson David Janetzki said.

What you need to know

Earlier this year, the energy regulator launched court action against the Callide power station’s part-public owner alleging performance-standard failures.

Last month, the competition watchdog said it would not oppose CS Energy’s proposed takeover of the private-owned portion of the station.

The government announced a review of state-owned power generation companies after the draft report’s release, and will deliver rebates of at least $1000 to all households from July, with the LNP promising station “maintenance guarantees”.