Issues abound at Queensland’s Callide power station. 

Wholesale power prices in central Queensland are expected to increase due to a delay in restoring two coal-fired generators at the Callide Power Station. 

A fire incident in May 2021 resulted in a major power outage. Originally, the units were scheduled to gradually come back online starting from September, but CS Energy, the owner, has announced a setback in the timeline. 

Unit C3 is now projected to resume operation at half its capacity in January next year, while C4 is expected to be back in May. 

Queensland Deputy Premier Steven Miles expressed frustration over the delay but stated that higher wholesale prices would not necessarily impact retail customers directly. 

However, those who pay wholesale prices will inevitably face increased costs, and some of those expenses may be passed on to consumers. 

Research Director Rod Campbell from the Australia Institute noted that the impact on consumers is likely to be minimal since Callide represents less than 10 per cent of coal-fired generation capacity in Queensland. 

CS Energy acknowledged the complexity of the restoration project and emphasised the importance of reliable generation. 

The Queensland Mining and Energy Union anticipated further delays and costs in the repair process. 

The union also plans to take industrial action at the power stations due to unresolved negotiations with contractor Programmed Services. 

The MEU is concerned about pay disparities and is urging the Queensland Labor Government to address the issue by transitioning contract labour back to permanent positions.