NSW taxpayers will not spend a single dollar extending the operation of the Eraring power station.
Despite Coalition claims that keeping the privatised power station running would cost taxpayers $3 billion, its operator has confirmed it will not seek public support through an underwriting arrangement struck nearly two years ago.
That means not a single taxpayer dollar will be spent and the lights will stay on.
Such an agreement would not have been necessary if the Coalition hadn’t sold Eraring in 2013.
The NSW Government secured an agreement with Origin Energy in 2024 to underwrite Eraring until August 2027, to ensure energy reliability and avoid price spikes for households and businesses.
Last month, Origin notified the NSW Government, the Australian Stock Exchange and the Australian Energy Market Operator it plans to operate Eraring until April 2029.
This decision was independent of the existing underwriting agreement and does not lock the NSW Government into any further commitment.
Current energy security projections show NSW is expected to have sufficient energy supply by Eraring’s anticipated closure in 2029, thanks to new renewable generation and storage coming online.
Minister for Energy Penny Sharpe said:
“This decision by Origin shows the NSW Labor Government made the right call and the right deal when it comes to Eraring.
“NSW families won’t pay a single dollar for this agreement, which has helped keep the lights on as we deliver renewable energy needed to replace NSW’s privatised coal fired power stations.”
Treasurer Daniel Mookhey said:
“This deal kept Eraring open, delivered energy security and didn’t cost taxpayers a cent.
“It has turned out not to be the horror show the Coalition wildly predicted, as they claimed keeping Eraring open would cost taxpayers billions.
“We will stay engaged with the owners of the privatised station as we get on with the job of delivering clean and reliable power at the lowest possible cost.”