The Federal Government has announced the extension of its Contract for Closure Program, citing ongoing complex negotiations.

 

The program, initially scheduled to finish at the end of June, will be extended to ensure continuing good faith between the Government and those seeking to use the scheme.

 

“Since the announcement of the Government’s Clean Energy Future package, complex negotiations have taken place in good faith concerning the contract for closure program,” Minister for Resources and Energy Martin Ferguson said.

 

“At the moment there are a number of complex commercial issues yet to be resolved including the need to ensure value for money.”

 

Forming part of the Federal Government’s Clean Energy Future Package, the Contract for Closure Program seeks to assist in the closure of up to 2,000 megawatts of high emissions-intensive generation capacity by 2020.

 

Under the scheme, eligible generators have been seeking payment by the Federal Government to retire their operations in an orderly way to ensure minimal impact of supply, workers’ entitlements and remediation.

 

There are five generators participating in the Contract for Closure Program:

  • Alinta Energy;
  • HRL;
  • Hazelwood Power Partnership (91.8 per cent owned by International Power GDF Suez Australia);
  • RATCH-Australia; and
  • TRUenergy. 

 

Negotiations are expected to continue and the Government will endeavour to reach an outcome in the coming months.  Further information is at www.ret.gov.au.