Rio Tinto will get “nothing like” $450 million (US$303 million) in compensation to offset the impact of a coal price cap on its Gladstone Power Station in Queensland, the prime minister says.
The federal government is negotiating coal price caps of $125 a tonne with Queensland and New South Wales, in a bid to put drive down household and business electricity bills.
The Queensland government has already issued a formal direction to state-owned generators to bid into the national grid at a price consistent with a domestic coal price of $125 a tonne.
The state and federal governments have also agreed to split the bill to compensate Rio Tinto for the impact of the cap on its Gladstone Power Plant, one of only two wholly private generators selling to the grid in Queensland….