Eraring power station closure: ‘We had a plan, now they’ve betrayed us’

Lake Macquarie mayor has accused the NSW government and Origin Energy of ‘blowing up’ a ten-year plan for the transition from coal-fired power to renewables.

Lake Macquarie mayor Kay Fraser at the Eraring coal-fired power station, which will now be closed seven years early. Picture: Liam Mendes

The mayor of Lake Macquarie has accused the state government and Origin Energy of “blowing up” a 10-year plan to move from coal-fired power to renewables, saying workers and businesses in the NSW Hunter region have been abandoned.

After the energy giant announced its intention to shutter the Eraring coal-fired station seven years ahead of schedule, workers at the 35-year-old site were in a state of shock, convinced their employer would stick to the agreed timeline and close the plant in 2032.

Kay Fraser, who has served as Lake Macquarie mayor for six years and an ALP councillor for eight years, said the closure was a “betrayal of the workforce and the region”.

She said Origin Energy and the state government had abandon a plan that had been devised with local government.

“We agreed to a 10-year plan to prepare for this transition, helping the Eraring workforce move into new jobs and attracting new investment into the region as the operation is wound down,” Ms Fraser said.

“But now the plans have been thrown out the window.”

Ms Fraser added that no one was given any advanced notice about the decision.

“I just don’t think people in Sydney understand. If you get rid of 500 jobs, plus the mining in the region that will be affected, where are you going to find new ones? There has to be some kind of plan in place,” Ms Fraser said.

In a statement, Origin Energy chief executive Frank Calabria said the proposed exit from coal-fired generation reflected the rapid transition towards renewable energies, while NSW Energy Minister Matt Kean promised a jobs package to support affected communities.

But the Mining and Energy Union insisted the 500-strong workforce – composed of 250 permanent employees and an additional 250 contractors – was blindsided by the announcement, accusing the energy giant of ignoring the interests of workers, families and communities.

One Eraring plant worker who wished to be known only as Andrew said the news was “devastating” for the community and everyone who worked at the station, after managers requested a site-wide meeting at 8.30am to break the news.

“I had a plan of what I was going to do, when I was going to retire, and pretty much all that has been torn up and thrown away,” he said.

“We had been advised that by 2032 we’d get out of coal, by 2032 I pretty much would’ve been 62, so it would’ve been pretty good. That’s not possible now,” he said.

Shane Sayer, who has worked at the power plant for more than three years, said the decision had “surprised” everyone, but would hit the youngest and oldest members of the workforce the hardest.

Businesses across the Hunter Valley and Lake Macquarie regions were also blindsided by the announcement, according to ­locals, who said the flow-on ­effects of the closure would ­hamstring the local economy.

“We have a lot of workers from the plant come for drinks and they’re a big part of the economy and life of the community,” said Lake Macquarie brewery owner Jaden Becheim.

“The big worry I think for the community is that a lot of highly skilled people will simply leave the town because they’ve lost their livelihoods. Then there’s the question of energy prices for local businesses.”