The Albanese government’s plan to compensate New South Wales and Queensland for imposing a cap on coal prices could run “significantly” above $500m with most of the money directed to coal-fired power plants, according to Treasury briefings.
The compensation for the $125 a tonne price cap for black coal is part of the package announced by the government on Friday to lower energy prices. There would be compensation for coalminers but the bulk of the money would be for power stations, sources say.
