The impending shutdown of Australia's largest coal-fired power station has prompted a major intervention from a federal authority, with a plan to support nearly 2000 workers and address a multi-billion dollar economic shortfall.
Preliminary Support for Hunter Valley Workers
The Net Zero Economy Authority (NZEA) has formed a preliminary view that close to 2000 workers affected by the closure of the Eraring Power Station should receive government-backed support to secure new employment. This significant move comes as the region braces for the plant's scheduled closure in August 2027, though owner Origin Energy is considering an extension to 2029.
The power station directly employs approximately 220 people, with a further 200 contractors working on-site. The economic impact extends far beyond the plant's gates, with surrounding coal mines, maintenance firms, and supply businesses supporting an estimated 1400 additional jobs.
The $4.5 Billion Economic Challenge
Lake Macquarie Mayor Adam Shultz has starkly outlined the scale of the challenge, estimating that Eraring is responsible for roughly $4.5 billion worth of economic output. "Our view is if not here then where?," Cr Shultz stated, having previously brought a mayoral minute to council supporting the proposed Energy Industry Jobs Plan (EIJP).
"Regardless of whether it closes in 2027 or 2029 we need to have appropriate support in place," he emphasised. The EIJP is designed to assist employees impacted by the closure of coal and gas-fired power stations, placing obligations on employers to provide transition supports.
These supports include:
- Access to career and financial advice
- Re-training and upskilling opportunities
- Paid time off or flexible working arrangements to access these services
Consultation and Final Decision Pending
NZEA Chief Executive David Shankey has written to relevant stakeholders outlining the information currently available and providing an opportunity for employers, peak bodies, and unions to correct any inaccuracies before a final determination. A spokeswoman for the authority confirmed that a final decision is due early this year.
"The letters reflect ongoing consideration; a final determination has not been made," she said. "The chief executive's consideration continues to be informed by thorough consultation, analysis and an assessment process, as required under our legislation."
An Origin Energy spokesman said the company supported the NZEA's role but believed its own comprehensive transition program, which has already funded 525 training courses, meant additional support was unnecessary. The company has, however, contributed to the authority's consultation.
Justin Page, coordinator of the Hunter Jobs Alliance, argued that the NZEA's determination for Eraring must set a high-water mark for worker transition in the Hunter region. The alliance has strongly advocated for enforceable access to paid time off and flexible work arrangements, warning that transition supports fail if workers cannot practically access them.
"The process represents a critical test for how Australia manages major energy transitions," Mr Page said.
