Estimates reveal true cost of fossil fuel generation

Thursday, 26 November

Answer provided by the Hon Mike Nahan, Minister for Energy as a part of the Estimates and Financial Operations Committee 2014-15 Annual Report Hearings:

Hon Robin Chapple asked:

4)            Page 52, under "Statement of Comprehensive Income," I ask:

a)            How much money did Synergy spend on fuel for their generation facilities alone?
Answer: $368.7 million

b)            From which companies did Synergy purchase its fuel?
Answer: Synergy has long-standing fuel supply contracts with Premier Coal and North West Shelf Gas.

c)            How much money did Synergy pay to each of these companies?
Answer: The terms and conditions relating to volumes and pricing of contracts are commercial in confidence

WA Greens spokesperson on Energy Robin Chapple MLC said:

“The amount of money this government is spending on fossil fuel generation is simply astronomical.

“Yet the only investment in this state’s future energy security we’ve seen so far from the Barnett government has been tokenistic.

“Furthermore, Energy Minister Mike Nahan has admitted the price of gas ‘could more than double’ once the Gorgon gas project comes online in 2015-16, which would contribute significantly to this cost each year.

“Imagine what could be achieved if this money was channelled into renewable energy projects. We need to wind back our reliance on ancient fossil fuel power stations, such as Muja, which are costing this state hundreds of millions of dollars.”

For comment please Media Liaison Tim Oliver on 0431 9696 25 or 9486 8255.

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