Coal price rise to hurt households

The Barnett Government may pay higher prices to Collie's struggling coal miners in a move that could push up power bills for householders.

Premier Colin Barnett and Energy Minister Mike Nahan said yesterday that customers of Griffin Coal and Yancoal might have to pay the two foreign-owned firms more under a shake-up of the sector.

It emerged this week that Indian-owned Griffin was in dire financial straits amid mounting losses. Chinese-owned Yancoal has also been battling to make money.

Any move to pay the miners a higher price would flow through to electricity costs because Yancoal supplies State-owned generator Verve, which produces about 60 per cent of the South West's electricity.

Griffin supplies coal to Japanese-owned power station Bluewaters, which provides about 10 per cent of the energy entering the South-West grid and has a major contract with public energy retailer Synergy. Among Bluewaters' other customers is the Water Corporation, meaning that higher coal prices could affect water costs.

Asked outside of State Parliament if customers of Griffin and Yancoal might have to pay more for coal, Dr Nahan said: "Potentially, yes."

Shadow energy minister Bill Johnston seized on the Government's admission, saying it betrayed their mismanagement of Collie's coal industry and would ultimately hit electricity consumers.