A NSW domestic coal reservation plan has been slammed as clumsy and politically motivated by the NSW Minerals Council, claiming the move will do little to cut electricity prices.
The Australian revealed NSW Treasurer Matt Kean has instructed the majority of NSW thermal coal miners to reserve up to 10 per cent of their output for the state's power stations by the end of January, under a new clamp down designed to head off any potential supply shortfalls this year.
"The NSW Energy Minister’s coal price cap is a clumsy, politically-motivated market intervention designed in haste, with little or no consultation. The policy will have no meaningful impact on electricity prices, but will come at a significant economic cost," said the NSW Minerals Council.
The mining lobby, whose members include major producers BHP, Whitehaven Coal and Yancoal, said it was a rushed policy and contradicted a pledge by NSW Premier Dominic Perrottet not to extend the scheme more widely.
"Extending the policy to coal producers not currently involved in domestic coal supply is a radical change of approach that highlights how extremely rushed this policy process has been," the Council said.
"The price cap policy undermines the reputation of NSW as an investment destination, and as trading partner and supplier to our critical export markets overseas. It will threaten future investment in NSW across the resources and energy sector, and more broadly."
