A shadow has fallen over the future of a coal-mining town south of Perth with the West Australian government announcing planned power plant closures, the local MP says.
Treasurer Mike Nahan has flagged mothballing part of the Muja power station near Collie under sweeping changes to an oversupplied energy market that aim to slash generation costs.
Dr Nahan also conceded it had been a mistake to build new power plants in recent years, including the coal-fired Bluewaters plant northeast of Collie.
While that plant would continue operating, the target was to reduce the dominance of coal in the energy mix, he said.
"It doesn't mean the end of Collie, it doesn't mean the end of coal-fired power stations," he told reporters.
Member for Collie-Preston Mick Murray was outraged.
"I'm just shocked, absolutely shocked," Mr Murray said.
"He hasn't been down to speak to our community at all and has done it through the press. What a gutless wonder he's turned out to be.
"What are the people of Collie going to think over the next 10 years?
"He's killed the town in one stroke."
Dr Nahan said a recently refurbished part of Muja was profitable and had "saved the day" after the Varanus Island gas plant explosion crippled the state's energy supply, suggesting its future was safe for now.
Opposition energy spokesman Bill Johnston said the $330 million refurbishment of Muja AB had turned out to be a huge waste of money.
"They were still building new power stations as late as 2014 and in 2016, just two years later, they're saying there's too many power stations," Mr Johnston said.
Dr Nahan also told reporters the two private companies mining one coal field in Collie were running unviable operations.
"They have to get their act together and have a discussion, and merge," he said.
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