(1) The three NSW government-owned electricity generators, Eraring Energy, Delta Electricity and Macquarie Generation have inherited certain asbestos liabilities arising out of the construction, operation and maintenance of New South Wales power stations previously owned by Pacific Power (formerly known as the Electricity Commission of NSW or "Elcom"). In the last five calendar years there have been a total of 158 asbestos-related claims against the three generators made up as follows:
Year No. of Claims
1999 24
2000 43
2001 36
2002 28
2003 27
Total 158
There have been 4 claims to date in 2004.
(2) Actuarial advice has been sought in relation to these asbestos liabilities and updated figures for all three generators are not yet available. It is expected that these figures will be provided when available.
(3) The three generators are self insured for past asbestos liabilities. Claims are paid by the generators themselves not by insurance companies. Genuine compensation claims relating to asbestos disease brought by former employees of Pacific Power and employees of contractors involved in the construction and maintenance of power stations are settled expeditiously and cross claim recovery action is brought against the parties that recommended, used or supplied the asbestos products.
(4) Contracts for the supply of equipment to Pacific Power issued from 1974 required such supplies to be free of asbestos.
Asbestos has largely been removed from power stations and, where it is still in place, has been effectively encapsulated or otherwise managed in accordance with the relevant safety standards.