Alinta wants $250m to close Playford
Power generator Alinta has warned Government that it will have to pay up to $250 million to shut down the coal burning Playford power state at Port Augusta in South Australia, more than double the original estimate.
Alinta chief Jeff Dimery said that the “contract for closure” opportunity in the carbon tax package had pinpointed Playford as likely for closure, along with International Power’s Hazelwood generator in Victoria.
Dimery said Alinta was also under pressure in WA, and said gas prices in that state would have to rise by more than 40 percent in the coming three years if its business there was to remain viable.
He said the State Government’s refusal to allow the company the raise retail prices was costing $80 million a year. Alinta lost an arbitration with North-West Shelf joint ventures last year which also pushed up costs.
Dimery confirmed that Alinta was struggling to emerge from the debt shadow cast by former owner Babcock & Brown, which saddled the company with debt.
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