Review of ETS compensation

Summaries - Australian Financial Review
Friday 20/11/2009 Page: 3

The federal government has called on investment bank Morgan Stanley to review the impact the emissions trading scheme (ETS) would have on privately owned generators in the electricity industry. The review will look at minimum compensation required for various generators including TRUEnergy's Yallourn and International Power's Hazelwood in Victoria, Babcock and Brown Power's Flinders plant in South Australia and Queensland's Milleran and Callide C plants that are backed by Intergen. Liberal leader in the Senate, Nick Minchin, has reiterated his dislike of the ETS saying that to commit to the scheme prior to the Copenhagen summit would be 'idiotic.' The scheme has also attracted criticism from Peter Greenwood, a director China Light and Power, parent of TRUEnergy, and the Australian Chamber of Commerce and Industry.