Operator of troubled Callide power station sued for more than A$1 billion
CS Energy, the Queensland state-owned operator of the Callide coal-fired power station, is facing a class action seeking more than A$1 billion in damages over the 2021 Unit C4 explosion and subsequent prolonged outages. The plaintiffs include insurers and downstream electricity retailers.
ABC News Australia reports that the class action filed in the Queensland Supreme Court is seeking damages for a cascade of failures, delayed repairs and restart slippages stemming from the May 2021 Unit C4 explosion at Callide. CS Energy, owned by the Queensland state government, is named as the principal defendant.
Law firm Maurice Blackburn, which is running the case, puts total claims at more than A$1.1 billion. The insurance plaintiffs include Allianz Australia, Suncorp and QBE. Generators co-funding the action include the state-owned Stanwell Corporation and private retailer AGL Energy. The plaintiffs argue that high post-Covid wholesale electricity prices reflected a « supply gap » caused by CS Energy's alleged negligence at the site.
Queensland Treasury said CS Energy would « fully cooperate with the legal process ». The Australian Energy Market Operator, AEMO, will publish its grid-impact assessment of the case next week. Shares in AGL Energy rose 1.8% intraday on the ASX after the filing; CS Energy is unlisted, so direct market reaction was limited.
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