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Parliamentary Questions

Question Without Notice No. 451 asked in the Legislative Council on 9 May 2019 by Hon Dr Steve Thomas

Minister responding: Hon W.J. Johnston
Parliament: 40 Session: 1

Answered on

SYNERGY — PREMIER COAL SUPPLY AGREEMENT

451. Hon Dr STEVE THOMAS to the minister representing the Minister for Energy:

Thank you, Madam President. I will try to set a good example for him.

The PRESIDENT: A shining example, member.

Hon Dr STEVE THOMAS: Thank you, Madam President.

I refer to the media report in The West Australian of Monday, 6 May 2019 that said of Premier Coal —

Premier told the Shire of Collie last week that its supply contract with State-owned energy provider Synergy included minimum as well as maximum annual tonnage requirements that were in place through to 2030.

(1) What is the minimum amount of coal Synergy is required to take under contract from Premier Coal each year until 2030?

(2) What financial penalties does the state face if Synergy takes less than this amount?

(3) If the Labor plan to achieve 50 per cent renewable energy by 2030 is to be attained, and we can expect closures of coal stations as suggested by Labor ministers, how much will the state be paying out each year until 2030 for coal that it will not use as it gradually closes coal-fired capacity in Collie?

Hon STEPHEN DAWSON replied:

I thank the member for some notice of the question. The following information has been provided by the Minister for Energy.

(1)–(2) The terms and conditions of Synergy's contract with its counterparty, which was approved under the former government, are confidential.

(3) I thank the member for his confidence in a Labor win at the upcoming federal election. The premise of the question is incorrect, the Minister for Energy has stated previously that renewable energy will increasingly displace demand for coal generation due to the rapid uptake of rooftop solar photovoltaics and the decline in the cost of renewable energy.