The AFR were all over this yesterday. Here is an extract:
The vast majority of coal used to generate electricity in NSW, and all the coal used to generate power in Queensland, was already contracted at below the proposed cap of $125 per tonne.
Prices in NSW vary between $80 and $120 per tonne, and in Queensland between $50 and $120 per tonne.
The main exception was the 2880 megawatt Eraring power station in NSW, which burns about 4 million tonnes a year, about one-fifth of the state’s coal consumption, and is currently paying spot prices of about $200 a tonne.
Apart from Eraring, the coal cap could come into play if a generator exhausted its supplies and was required to restock on the spot market.
Six months ago, the Gladstone power station ran harder than expected and burnt through its contracted coal, exposing it to export prices as it restocked
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