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Union blames poor maintenance for Callide coal plant explosion

Mining and energy union bosses say poor maintenance was to blame for catastrophic failures at one of Queensland’s state-owned coal-fired power stations that has pushed up power prices.

Workers from the Callide Power Station outside the site after the explosion in May 2021. Picture: William Debois
Workers from the Callide Power Station outside the site after the explosion in May 2021. Picture: William Debois

Mining and energy union bosses believe poor maintenance is to blame for catastrophic failures at one of Queensland’s state-owned coal-fired power stations that has pushed up power prices.

An explosion at the trouble-prone Callide power station in May 2021 immediately stripped 10 per cent of Queensland’s generating capacity from the east coast grid and caused widespread blackouts to 470,000 homes and businesses across the state.

A cooling tower at the central Queensland station collapsed in a separate incident in October 2022.

There has been no public explanation about what caused the two failures, with an independent investigation by forensic engineer Sean Brady yet to deliver findings after more than 2 ½ years. 

CFMEU mining and energy division district vice-president Shane Brunker believes the coal plant had been poorly maintained by the government’s CS Energy which operates and owns half of Callide C.

“The maintenance plan should be made more public, because it is affecting Queensland energy consumers and at the end of the day, it’s the Queensland voters’ asset,” he said. “The minister tells us that he informed the board there is unlimited funds for maintenance; well where was that guarantee over the last 10 years? How has it been allowed to run down to such a state of affairs?”

CS Energy has repeatedly failed to meet scheduled return to service for Callide, which is now not due to be fully operational until July 31.

Energy Minister Mick de Brenni, who is a shareholding minister in CS Energy, this week conceded he still did not know what caused the explosion, which LNP spokeswoman Deb Frecklington said was “unbelievable”.

“Are you kidding me that a minister of the crown, a minister who was paid to do his job, doesn’t know what went wrong after 1000 days when one of our major power plants has gone down?” she said.

“No one believes that.”

Mr de Brenni said Dr Brady’s report had not been completed yet and insisted he had not seen any preliminary findings or recommendations. Mr de Brenni has also claimed problems at Callide had not driven up power prices, which has been refuted by the LNP and energy experts.

“Dr Brady has been given the freedom to conduct his investigation independently and to the scope that he sees fit,” he said.

“I am advised the state has never refused a request by CS Energy for maintenance expenditure.”

Energy economist Bruce Mountain said it was incorrect to claim energy prices had not jumped since Callide went offline.

Professor Mountain, who is head of the Victorian Energy Policy Centre, said between July 2021 and July 2023 retail prices increased by 35 per cent and Queensland “has continued to have the highest, or close to the highest, wholesale price since the Callide closure”.

Lydia Lynch
Lydia LynchQueensland Political Reporter

Lydia Lynch covers state and federal politics for The Australian in Queensland. She previously covered politics at Brisbane Times and has worked as a reporter at the North West Star in Mount Isa. She began her career at the Katherine Times in the Northern Territory.

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Original URL: https://www.theaustralian.com.au/business/mining-energy/union-blames-poor-maintenance-for-callide-coal-plant-explosion/news-story/beca6bbd622a3c4cf99443fbbe159c0e