Newspaper article The Chronicle (Toowoomba, Australia)

Tax Forces Power Sites to Refinance

Newspaper article The Chronicle (Toowoomba, Australia)

Tax Forces Power Sites to Refinance

Article excerpt

Byline: John Farmer john.farmer@thechronicle.com.au

MILLIONS of dollars have been pumped into the Millmerran power station to keep the asset afloat as the looming carbon tax takes its toll on the coal-fired electricity industry.

The bailout by the power station's owner, InterGen, was the first of two in the past week with a part-owner of the Victorian brown-coal power station Hazelwood forced to refinance the debt on that power station.

Both are believed to be a direct result of a coal-power generation industry that is under strain because of the carbon tax and volatility on financial markets.

Those factors are making it difficult to refinance at a reasonable rate.

Member for Groom and Opposition energy spokesman Ian Macfarlane said the situation was a aclear vote of no confidencea by the banks in the viability of coal-fired electricity generation under the carbon tax.

Mr Macfarlane said the fallout would be less reliable, more expensive electricity for consumers. …

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