ENERGY minister Mike Nahan has announced a renegotiated agreement between Synergy and Premier Coal that will secure the state’s future coal requirements and protect jobs central to the region’s economy.
Dr Nahan confirmed Synergy would pay more for its coal supplies, but said the terms of the agreement would remain confidential between the parties.
“Electricity prices will not increase as a result of this decision,” Mr Nahan said.
The minister said any increase in the annual subsidy paid to Synergy would be offset by the benefits of the state government’s decision to re-integrate the state’s electricity generation and retail utilities.
“The state government through Synergy has worked hard with the owners of Premier Coal to finalise an amended supply agreement that is critical to the future of the state’s economic development and the security of electricity generation,” he said.
Dr Nahan said the original coal supply arrangement signed in 2005 was simply unsustainable and the current government has been forced to renegotiate a contract that would now provide energy security for the state.