http://au.news.yahoo.com/latest/a/-/latest/14759395/govt-scraps-plans-to-shut-do...Talks on closing down some of the country's highest polluting power stations have collapsed, with the Federal Government saying it could not reach an agreement on compensation.
The Government has been negotiating contracts for closure with five power generators - three of them in Victoria - as part of its carbon tax package.
But Resources Minister Martin Ferguson says the talks have failed to agree on the appropriate level of compensation, and the negotiations have been cancelled.
"There remains a material gap between the level of compensation generators have sought and what the Government is prepared to pay," Mr Ferguson has said in a statement.
The Government was hoping to close down 2,000 megawatts of carbon-intensive power generation by 2020, although it never disclosed how much money it was willing to put on the table.
The five generators that participated in the negotiations include: Alinta Energy in South Australia, HRL in Victoria, Hazelwood power station in Victoria, RATCH-Australia in Queensland, and the TRUenergy plant in Yallourn, Victoria.