Energy Security Fund response

30 Mar 2012

Microsoft Word - MR - Energy Security Fund 30-3-12

International Power-GDF SUEZ Australia says the allocation of $266 million to its Hazelwood power station and $117 million to Loy Yang B from the Australian Government’s Energy Security Fund would provide some level of compensation for the impact of the introduction of a carbon tax on 1 July 2012, though significantly less than the actual impact on its business.

The company has consistently argued that there was a need for significant compensation for generating assets whose value would be materially impacted by the introduction of the carbon tax.

This new tax will add significant costs to the production of electricity which we will not be able to pass through in full. Compensation through the Energy Security Fund is essential to ensure investors do not lose faith in the Australian energy market, and to ensure the secure operation of the National Electricity Market.

Energy Security Fund response