Vic govt, Hazelwood mine at loggerheads

The state government and the owner of a Victorian coal mine remain at loggerheads over who should foot an $18 million firefighting bill.

The matter could end up in court if the mine owner does not reconsider its position.

Hazelwood mine owner GDF Suez says it was surprised to receive an invoice from the Country Fire Authority for the Hazelwood mine fire, which blanketed nearby Morwell in toxic smoke and ash for 45 days in early 2014.

"We believe the fire services levy - which is in effect an insurance policy - is designed specifically to cover fire suppression activities, whether they be large or small," GDF Suez said in a statement on Tuesday.

But Energy Minister Lily D'Ambrosio says the company owed Victorians and that it had been found to be ill-prepared and did not respond quickly enough to the fire.

The fire levy covers the day-to-day operations of emergency services, not events like the Hazelwood fire, she said.