A REGULATORY body governing electricity generation in Victoria and providing greater protection for Latrobe Valley power industry workers must be established, according to the Gippsland Trades and Labour Council (GTLC).
The GTLC will flag the concept at a meeting with State Energy Minister Peter Batchelor next week.
GTLC secretary John Parker has suggested the need for an authority to control how and where power generation will take place in the future, in an effort to protect jobs in the industry.
``We certainly believe there is a need for an overall authority,'' he said.
``I think the government should have an authority specifically for the power stations making sure they are going to meet the power needs and they are going to be maintained.
``(It would also ensure) people just can't close the doors on a power station without some long term warning system, because private operators in the past have just locked the gates.''
Mr Parker believes if the government is to keep putting money into the power stations, it should have some asset control.
``Sooner or later the government will have to intervene in the power industry,'' he said.
``Why would the government keep paying and not have a partnership?''
However Emma Tyner, the spokesperson for Mr Batchelor hinted it was unlikely the government would commit to major intervention in the industry.
``Like elsewhere in Victoria, power stations in the Latrobe Valley are not owned or operated by the State Government,'' she said.
``They are private companies supplying power to a nationally-regulated energy market and there are no plans to change this.
``The key to the Latrobe Valley's future as an electricity generator is to become and remain attractive to private investors.
``Issues raised by the Gippsland Trades and Labour Council will be discussed when the Minister meets with them next week.''
Mr Parker will also discuss ideas about tighter controls on power restrictions, carbon emissions and a new `clean coal' power station for the Latrobe Valley, with Mr Batchelor.
He hopes the government will be able to allay the GTLC's fears that construction of HRL's new power station in the Latrobe Valley is not running to schedule and most of the plant would be built off-shore. ``We're concerned about the loss of jobs for Latrobe Valley power workers (if it is built off-shore) because it would barely soak up the rate of Latrobe Valley workers who wouldn't have jobs,'' Mr Parker said.
``The original plan was that HRL would bring it online in 2013 but it doesn't look like that target will be met.
``Because of the privitisation of power stations, the State Government is a bystander in the commercial world, all they can do is encourage and support it, they can't dictate to the power stations.
``Really the government will clarify the position and explain what incentives they can and can't do.''
Mr Parker said the GTLC had not raised its concerns with HRL and would seek a meeting with the company at the completion of talks with the State Government.
HRL public relations manager Maria Brejcha told The Express the company was in the middle of commercial negotiations to progress the proposed project for the Latrobe Valley.
Ms Brejcha said the plant was still planned to be operational and generating electricity by 2012/13.
``We're not in a position to make an announcement with regard to construction at this stage, until the project site is finalised,'' she said.
``In regard to emissions trading, the rules for and the level of assistance under the Federal Government's draft Carbon Pollution Reduction Scheme (CPRS) are not yet finalised.''
Ms Brejcha said the IDGCC (Integrated Drying Gasification Combined Cycle) demonstration power station project was not another conventional brown coal power station.
``It is a first of a kind demonstration of the new IDGCC technology at large scale,'' she said.
``The IDGCC technology has already been proven at 10MW scale in Morwell with electricity generated sent to the grid.
``The power station will use the IDGCC integrated drying and gasification combined cycle process to convert brown coal into a synthetic gas or syngas for use in a gas turbine that will also be able to use natural gas as a startup and backup fuel.
``The gas turbine combined cycle plant generates power with higher efficiency than a conventional boiler and steam turbine plant.''
Mr Batchelor's office said while the proposed clean coal power station was not a government project and all commercial decisions relating to it were for HRL to make, it was working with the company to move the project forward.
``The $50 million Energy Technology Innovation Strategy grant is about helping HRL bring online low emissions energy technology and is part of the Brumby Government commitment to securing the future of the Latrobe Valley,'' Ms Tyner said.
She said the biggest impact to the Latrobe Valley generators would come from the Commonwealth Government's carbon pollution reduction scheme and the State Government was calling for transitional financial assistance for Latrobe Valley generators.