NSW coal mines are to be required to supply local power companies with cheaper coal under newly revised Government directions.
Announcing the move, Treasurer Matt Kean said both domestic and export-focused coal companies would be required to meet the commitment.
“In response to soaring coal prices caused by the war in Ukraine, the Albanese Government asked NSW to introduce a coal price cap to put downward pressure on electricity prices,” Mr Kean said.
“As a result of our efforts, federal Treasury analysis shows that future electricity prices for NSW have dropped by 41 per cent since the price caps were announced.”
He said this was a modest ask of coal producers, who exported more than $61 billion of coal from Newcastle alone last year.
“Where possible, coal mines will be required to provide power stations with the amount of coal they have supplied in the past, and export-focused mines will be required to provide additional coal needed to meet any difference,” the Minister said.
“Export-focused coal mines that are now covered by the expanded directions will be required to provide no more than five per cent of their production.”
Mr Kean said the directions did not require any coal mine to break a pre-existing contract, including evergreen contracts to avoid impacting longstanding international commercial arrangements.
