‘No threat’ to SW power

Power supplies to the South West would not be compromised should the $1.2 billion sale of the Bluewaters power stations near Collie fall over, according to Energy Minister Peter Collier.

As revealed in the South Western Times last week, legal action from Perdaman Industries against Lanco Infratech for allegedly breaching a Collie coal supply contract could have implications for the sale of the Bluewaters assets.

Lanco Infratech, which bought Rick Stowe’s embattled Griffin Coal assets in March, has tried to double the price of coal sold to the Collie power plants.

Bluewaters currently generates about 10 per cent of the State’s electricity and the two Japanese companies poised to buy the power stations would expand the plant’s capacity if and when the sale is complete.

Mr Collier said should the sale of Bluewaters not happen, energy supplies to the region would not be affected.

‘‘Advice I have received is that we have plenty of excess capacity at this stage, therefore there are no current concerns regarding energy security in the South West grid,’’ he told the Bunbury Herald.

Perdaman director (corporate) Andreas Walewski said the company has taken Lanco to court for allegedly breaching its obligations under a coal supply agreement.

Perdaman previously entered into a 25-year agreement with Griffin Coal to supply 2.7 million tonnes per annum from as early as 2015.

Collie Chamber of Commerce and Industry chief executive officer Richard Jackson said he was concerned with the legal action but doubted itwould affect energy security in the South West.