”In the last year we have the utilisation of gas generators falling to 15 per cent, which represents massive under-utilisation and a sharp fall from previous years,” he said.

“Given such low utilisation, it is hard to see why a new generator is necessary, and why the community should have to be distracted by this extension. Instead, we need to focus on increasing the utilisation of our existing gas generators to contain upward pressure on prices.”

Mr Taylor was speaking about AGL’s plans for a gas-fired power station, 4km north of Dalton. The company has applied for a two-year extension on its 2012 approval to explore its need.

Goulburn MP Pru Goward said the community was “overwhelmingly against” the modification application.

“I support the community and after consultation with community spokespeople, am not convinced of the merits of this proposed extension. I believe this should be classified as a new proposal not simply an extension,” she said.

Meantime, Upper Lachlan Shire councillors John Searl and Darren O’Brien have called for an extraordinary meeting next Monday in response to community concerns.

Their motion calls on the council to formally object to the two-year extension.