Cost of supply

Question

1.In a consultation call with the industry last week, I understand DISR and DCCEEW were asked whether a company would have to sell below their cost of supply if there were no buyers at higher prices. Is it correct that you confirmed this would be the case - that companies would have to sell at whatever price a buyer offered, even if it was below their cost of supply? 2. If companies have to sell below their cost of supply, this would make new investment in new supply impossible, wouldn't it?

Answer

See attached response.

Documents

• Question with answer (PDF) (opens in a new tab)
• BI-060_McDonald_Cost of supply_DISR.pdf (opens in a new tab)