The NSW Liberal and ³Ô¹ÏÍøÕ¾s Government today delivered on its commitment to level the playing field among coal companies as part of the Commonwealth Government’s coal price cap.
Treasurer and Minister for Energy Matt Kean said revised directions mean both domestic and export-focused coal companies will be required to provide cheaper coal to NSW power stations.
“In response to soaring coal prices caused by the war in Ukraine, the Albanese Government asked NSW to introduce a coal price cap to put downward pressure on electricity prices,” Mr Kean said.
“As a result of our efforts, federal Treasury analysis shows that future electricity prices for NSW have dropped by 41 per cent since the price caps were announced.”
Mr Kean said this was a modest ask of coal producers, who exported more than $61 billion of coal from Newcastle alone last year.
“Where possible, coal mines will be required to provide power stations with the amount of coal they have supplied in the past, and export-focused mines will be required to provide additional coal needed to meet any difference,” Mr Kean said.
“Export-focused coal mines that are now covered by the expanded directions will be required to provide no more than five per cent of their production.”
These directions do not require any coal mine to break a pre-existing contract, including evergreen contracts to avoid impacting longstanding international commercial arrangements.
Under the national Energy Price Relief Plan, coal suppliers can apply to the Australian Energy Regulator for a higher price cap if they can demonstrate that their costs of production are above the $125 per tonne coal cap.
