OPERATIONS

Origin's Quarantine Power station ready to supply

Following final commissioning, Origin Energy's Quarantine Power Station will be ready to supply electricity into the market as early as next week, according to Andrew Stock, Origin Energy's executive general manager generation.

"This week, three of the four new 25MW natural gas fired generating sets have been undergoing final commissioning trials to full capacity before being handed over by construction managers, Alstom Power, to Origin," Mr Stock said. "Construction of the Quarantine Power Station commenced in July 2001. The plant uses new gas turbines from Sweden equipped with the latest dry low NOx emission technology - in line with Origin's environmental commitment."

Mr Stock added that the fourth generating set has been constructed and will proceed through commissioning trials in coming weeks. It is expected to be available to generate electricity by mid January in time for the peak summer period.

When fully operational, the four turbine power station will generate up to 95MW of power for the National Electricity Market and the South Australian electricity grid. The plant is 100 per cent owned, operated and maintained by Origin Energy, and was designed and built by Alstom Power Ltd.

The Victorian Government has reviewed Origin Energy's gazetted electricity tariff proposal and determined that it can raise prices by an average of 13.5% from 13 January 2002. However, the concurrent announcement of a special power rebate will limit the average increase for Origin's customers to 4%.

"We recognise that the Victorian Government faced a number of complex issues in coming to their decisions including consideration of benchmark guidelines established by the Regulator. Whilst the Government's decision will require the Company to absorb some of the cost increases faced by retailers, we welcome the Government's decision to implement a special rebate scheme which will help offset the higher electricity distribution costs to rural areas,", Managing director of Origin Energy Mr Grant King said.

"While it is disappointing that we are not able to fully recover our costs, we are pleased that the Government has recognised a number of the cost pressures faced by some electricity retailers," Mr King said. "The electricity tariff decision and related policy initiatives is wide ranging and Origin will work closely with the Government to ensure that the package is implemented effectively."

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