Clayton
Cosgrove
SOEs Spokesperson

Genesis-Solid Energy contract debacle another oversight failure

Genesis Energy’s astonishing ability to unilaterally cancel its coal supply contract with Solid Energy means many of its other customers could follow suit and shows, yet again, a shocking lack of oversight, says Labour’s SOEs spokesperson Clayton Cosgrove.

“It appears that Solid Energy entered into contracts to supply coal which included an out clause for its customers if there is a material change in circumstances for the SOE. That’s the only conclusion that can be drawn from Genesis Energy cancelling the contract with no penalty applying.

“This raises the question: who is running the show?

“How could it not be foreseen that Solid Energy being placed into voluntary administration could trigger such an out clause? And why on earth was the clause included in the first place? And how many other contracts have this clause?

“Do the contracts mean that customers who contracted for a high price with the same deal as Genesis could cancel that and renegotiate for a new contract with lower prices? If so that means less money coming in for the company which has a domino effect for jobs.

“The supposed orderly transition of two years is looking less and less secure for the poor miners of the West Coast who have to deal with even more difficulties.

“Yet again the Government has failed to provide oversight,” says Clayton Cosgrove.

ENDS

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