❓ Dr. Honey questions the Minister for Energy about Premier Coal's failure to meet contractual obligations. The Minister clarifies that the government has no authority over the privately owned Premier Coal and blames the unreliability of coal supply, not renewable energy, for power station shutdowns.
AnsweredQoN 582Legislative Assembly
QuestionView source ↗
COAL-FIRED
POWER STATIONS — PREMIER COAL
582. Dr D.J. HONEY to the Minister for Energy:
I refer to the reported coal shortage, the government-owned
coal-fired power stations in Collie and the potential that we may need to
import coal from the eastern states because of that. Can the minister explain
the long-term reason for Premier Coal's failure to fulfil its
contractual obligations to provide coal, and what has the minister done as the
Minister for Energy; Minister for Mines and Petroleum to address the problems
that clearly extend far beyond the Collie mine incident of 16 August?
POWER STATIONS — PREMIER COAL
582. Dr D.J. HONEY to the Minister for Energy:
I refer to the reported coal shortage, the government-owned
coal-fired power stations in Collie and the potential that we may need to
import coal from the eastern states because of that. Can the minister explain
the long-term reason for Premier Coal's failure to fulfil its
contractual obligations to provide coal, and what has the minister done as the
Minister for Energy; Minister for Mines and Petroleum to address the problems
that clearly extend far beyond the Collie mine incident of 16 August?
AnswerView source ↗
I will answer this question, but I will point out to the
member that his question is structurally wrong. If he looks at standing order
75, he will see that it says —
Questions may be asked of —
(1) Ministers regarding matters
under the Minister's administrative responsibility;
The member asked me what
the problems are at Premier Coal. Premier Coal is a privately owned company. It
is not in any way controlled or influenced by the Minister for Energy, and I have
no powers either as Minister for Mines and Petroleum or Minister for
Energy to intervene in the operations of the coalmine. Let me assure the member
that I have taken plenty of legal advice on that question. I make it clear to
the member that the government of Western Australia
does not operate any coalmines. Although I am aware of some of the challenges
for Premier Coal—because Premier Coal has told me—I have
no authority or power to operate the Premier Coal coalmine. I cannot do that. There is absolutely no authority
that I have to intervene in the operations. Interestingly, I have emergency
powers to control liquid fuels and gas, but there is no equivalent power for
the operations of the coalmine. Even if we declared a state of emergency, we
would not have powers to intervene with the operations of the coalmine.
I make it clear that some confusion was generated by Paul
Murray at The West Australian that somehow this is about government
behaviour. I want to make it clear that that is simply a misunderstanding of
what has occurred. Premier Coal and Synergy
have a commercial relationship, with Premier Coal to provide a certain amount
of coal to Synergy. The way it works is that there is a floor and a ceiling
to the amount of coal that is to be provided, and prior to the start of the
year, Synergy can tell Premier Coal how much coal it needs within those two
limits. Unfortunately, Premier Coal has not been able to provide the contracted
volumes of coal to Synergy. Whether I like it or not, there is no authority for
the Minister for Energy to change the behaviour of the privately operated,
independently run Premier coalmine. I would love to have some authority to
change its behaviour, but I do not. The same was true when Hon Dr Mike Nahan
was the Minister for Energy. The member would remember, I am sure, that he said
that the two coalmines should merge. In the same way as that never occurred,
because he had no authority to make those two coalmines merge, I do not have
any authority to operate the coalmine at Collie. There is nothing the
government of Western Australia can do about the operation of the coalmine. Also, I want to go on further. There is this silly
comment by Paul Murray in The West Australian that somehow this is about
renewable energy. The opposite is true. This is about the unreliability of the
supply of coal. The member made a comment in The West Australian , using
Paul Murray's opinion piece as the basis for his opinion piece. The
member said —
� Synergy had already experimented
with shutting down the Collie coal power stations during the spring of last
year.
That is not correct. The Australian Energy Market Operator
turns on and off the power stations. I have made this comment 100 times. The Collie
coal-fired power station could not fit into the energy system for six weeks
last year because coal-fired power stations are not flexible, and, at this time
of the year, we get so much energy from people's rooftop solar that we
literally cannot get that massive coal-fired power station into the system.
Last year, we did not choose to experiment not turning on the station for six weeks;
it was not turned on for six weeks because it was not needed.
I want to finish on this, and I am sure that I will get a very
interesting supplementary question! At the time, the Premier and I went down to
speak to the workforce first and then announce the closure of Muja stage 6. We
then went down again to face the workforce, talk to it and then announce the
closure of the Collie power station and Muja D—the point being we
fronted the workforce first. I made the point that we are going to need coal
until we do not and, at the moment, we need coal. Therefore, I am bitterly
disappointed that Premier Coal is not providing the contracted tonnes to
Synergy. But I also point out that Griffin Coal is not providing the contracted
tonnes to either the privately owned Bluewaters power station or the privately
owned Worsley Alumina refinery; therefore, Premier is not the only one that is
not delivering on its contractual obligations.
member that his question is structurally wrong. If he looks at standing order
75, he will see that it says —
Questions may be asked of —
(1) Ministers regarding matters
under the Minister's administrative responsibility;
The member asked me what
the problems are at Premier Coal. Premier Coal is a privately owned company. It
is not in any way controlled or influenced by the Minister for Energy, and I have
no powers either as Minister for Mines and Petroleum or Minister for
Energy to intervene in the operations of the coalmine. Let me assure the member
that I have taken plenty of legal advice on that question. I make it clear to
the member that the government of Western Australia
does not operate any coalmines. Although I am aware of some of the challenges
for Premier Coal—because Premier Coal has told me—I have
no authority or power to operate the Premier Coal coalmine. I cannot do that. There is absolutely no authority
that I have to intervene in the operations. Interestingly, I have emergency
powers to control liquid fuels and gas, but there is no equivalent power for
the operations of the coalmine. Even if we declared a state of emergency, we
would not have powers to intervene with the operations of the coalmine.
I make it clear that some confusion was generated by Paul
Murray at The West Australian that somehow this is about government
behaviour. I want to make it clear that that is simply a misunderstanding of
what has occurred. Premier Coal and Synergy
have a commercial relationship, with Premier Coal to provide a certain amount
of coal to Synergy. The way it works is that there is a floor and a ceiling
to the amount of coal that is to be provided, and prior to the start of the
year, Synergy can tell Premier Coal how much coal it needs within those two
limits. Unfortunately, Premier Coal has not been able to provide the contracted
volumes of coal to Synergy. Whether I like it or not, there is no authority for
the Minister for Energy to change the behaviour of the privately operated,
independently run Premier coalmine. I would love to have some authority to
change its behaviour, but I do not. The same was true when Hon Dr Mike Nahan
was the Minister for Energy. The member would remember, I am sure, that he said
that the two coalmines should merge. In the same way as that never occurred,
because he had no authority to make those two coalmines merge, I do not have
any authority to operate the coalmine at Collie. There is nothing the
government of Western Australia can do about the operation of the coalmine. Also, I want to go on further. There is this silly
comment by Paul Murray in The West Australian that somehow this is about
renewable energy. The opposite is true. This is about the unreliability of the
supply of coal. The member made a comment in The West Australian , using
Paul Murray's opinion piece as the basis for his opinion piece. The
member said —
� Synergy had already experimented
with shutting down the Collie coal power stations during the spring of last
year.
That is not correct. The Australian Energy Market Operator
turns on and off the power stations. I have made this comment 100 times. The Collie
coal-fired power station could not fit into the energy system for six weeks
last year because coal-fired power stations are not flexible, and, at this time
of the year, we get so much energy from people's rooftop solar that we
literally cannot get that massive coal-fired power station into the system.
Last year, we did not choose to experiment not turning on the station for six weeks;
it was not turned on for six weeks because it was not needed.
I want to finish on this, and I am sure that I will get a very
interesting supplementary question! At the time, the Premier and I went down to
speak to the workforce first and then announce the closure of Muja stage 6. We
then went down again to face the workforce, talk to it and then announce the
closure of the Collie power station and Muja D—the point being we
fronted the workforce first. I made the point that we are going to need coal
until we do not and, at the moment, we need coal. Therefore, I am bitterly
disappointed that Premier Coal is not providing the contracted tonnes to
Synergy. But I also point out that Griffin Coal is not providing the contracted
tonnes to either the privately owned Bluewaters power station or the privately
owned Worsley Alumina refinery; therefore, Premier is not the only one that is
not delivering on its contractual obligations.
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