Cprs Failure

< BACK TO ENERGY starstarstarstarstar   Conservation - Energy Press Release
3rd December 2009, 07:32pm - Views: 1053
CPRS Failure Averts Asset Impairments and Lost Investment

The failure to pass the CPRS legislation in the Senate this week has avoided an impairment totalling hundreds of millions of dollars for TRUenergy, as well as other international power sector operators and local superannuation funds.

TRUenergy Managing Director, Richard McIndoe, said the company would have been forced to shelve its future investment plans in Australia, including its proposal to build 1500MW of cleaner gas generation to replace existing coal-fired generation, had the legislation passed.

"This impairment would have had an immediate negative impact on our financial position and without a viable balance sheet, the $2 billion pipeline of investment in clean technology TRUenergy plans to 2014 would be delayed at best, and abandoned at worst," said Mr McIndoe.

"This absence of new investment in lower emissions generation would lead to energy security concerns, particularly in Victoria, as demand grows.

Mr McIndoe said that Australia is dependent on foreign capital to construct critical energy infrastructure to meet rising demand.

"After governments and banks, energy infrastructure is the largest user of foreign debt in Australia," he said.

"China, Japan, the United Kingdom and Hong Kong have major utilities businesses that would be prepared to invest in cleaner technology to help reduce our carbon emissions and allow the early retirement of coal-fired power plants in Australia, given the right policy framework.

"The CPRS was not the right policy framework because it would have reduced the value of these investors' existing power assets, whilst expecting them to be able to commit new funds for replacement generation," Mr McIndoe said.

Reducing emissions should be the core objective of any climate change policy. To achieve the best policy outcome from such far reaching and economically important legislation then all options, including direct action to lower emissions, should be considered in the suite of alternatives to meet Australia's early emissions reduction targets.

For more information on this media release please contact\

Kate Shea
0412 975 080;

Carl Kitchen
0401 691 342


news articles logo NEWS ARTICLES
Contact News Articles |Remove this article