March 6, 2013
The Tarong Power stations could face further cutbacks following confirmation today of a major review of Stanwell operations in a bid to save $40 million in overheads.
Stanwell Corporation confirmed a union report yesterday that a review would take place across all its generation and mining sites.
This is on top of the savings identified last year which resulted in two generating units being mothballed at Tarong Power Station and job losses at both the power station and the adjoining Meandu coal mine.
The review aims to identify $40 million in cost reductions that will assist with returning Stanwell’s core business of electricity generation to profitability.
The review, which will consider the work processes and resourcing requirements at each of the corporation’s operating sites, will be led by Stanwell’s Chief Operating Officer Wayne Collins.
“Last year Stanwell’s generation business made a loss due to low wholesale electricity prices which are being driven by an oversupply of generation combined with falling demand,” Mr Collins said.
“With this imbalance forecast to continue for some time, it is vital for the sustainability of our business to look for cost reductions whilst not impacting on the electricity Stanwell produces for Queensland.
“We will be reviewing our site operations over the coming months and we will progressively make decisions on the changes necessary on a site-by-site basis.”
- Related article: Union Claims Major Restructure At Stanwell
