Centennial Mandalong v Delta Electricity (No.2) [2013] NSWSC 1860

Supreme Court New South Wales

Medium Neutral Citation: Centennial Mandalong v Delta Electricity (No.2) [2013] NSWSC 1860 Hearing dates: On the papers Decision date: 16 December 2013 Jurisdiction: Equity Division - Commercial List Before: McDougall J Decision: Plaintiff entitled to further relief sought. See at [31] for form of declaration made. Catchwords: CONTRACTS - interpretation - where carbon charges levied on methane emissions - whether certain emissions attributable to coal sold - no question of principle Legislation Cited: Clean Energy Act 2011 (Cth) Clean Energy (Unit Shortfall Charge - General) Act 2011 (Cth) National Greenhouse and Energy Reporting Act 2007 (Cth) National Greenhouse and Energy Reporting (Measurement) Determination 2008 (Cth) Cases Cited: Centennial Mandalong v Delta Electricity [2013] NSWSC 1505 Category: Procedural and other rulings Parties: Centennial Mandalong Pty Limited (Plaintiff) Delta Electricity (Defendant) Representation: Counsel: AC Archibald QC / J Williams NC Hutley SC / JA Watson Solicitors: Herbert Smith Freehills (Plaintiff) Jones Day (Defendant) File Number(s): 2012/384031

Judgment 1HIS HONOUR: The plaintiff (Centennial) produces coal from its Mandalong Mine in New South Wales, and sells some of that coal to the defendant (Delta). Centennial is obliged to pay carbon charges under the Clean Energy Act 2011 (Cth) and related legislation. Centennial claimed that the price payable for coal sold by it to Delta should be increased to reflect the amount of carbon charges incurred by Centennial that were attributable to that coal. Delta disputed Centennial's claim. On 17 October 2013 I gave judgment ([2013]) NSWSC 1505) in which I held, in effect, that in principle, carbon charges incurred by Centennial could be passed along under the price adjustment formula of the contract. 2Accordingly, I granted declaratory relief, the effect of which was to establish that in principle, carbon charges incurred by Centennial were to be taken into account as part of Government Charges Per Tonne for the purposes of the price adjustment formula.