A South Australian council has made a scathing, 22 page submission to a Senate inquiry investigating the rehabilitation of coal-fired power stations and their ash dams.

In its report, the Port Augusta City Council points to the failure of both the State and Federal Government to assist the community, following the closure of the Northern Power Station, one of the city's biggest employers.

It also said Flinders Power, a subsidiary of Alinta Energy, had failed to protect the local environment following the closure of the station.

Alinta Energy owned the power station before closing it in 2016 saying it was no longer financially viable.

"Efforts by the local community and the council to engage both the Commonwealth and State Government to fast-track opportunities and employment transition … proved frustrating and largely ineffective," the submission said.

Mayor Sam Johnson says Port Augusta has been unfairly treated by the Federal Government. ( ABC News: Glen Moret )

Port Augusta Mayor Sam Johnson said the Federal Government made very little attempt to help the city transition away from its coal-fired past.

"Whereas you look at the announcement of the Hazelwood power station, you had about a 24-hour response time from the Federal Government with a $43 million assistance package," Mr Johnson said.

Economic and social impacts

The submission said there was "cynicism felt by the Port Augusta community" by the "inequity when considering the level of support received by other communities facing closure of local coal-fired power stations".

"The resulting loss of jobs, income and disruption to the local economy was similar to the loss of any major employer and industry from a regional community. "Experience to date clearly highlights the failure of central governments … to protect and support local communities and the environment and to ensure corporations are compelled to honour their legal and moral obligations."

Local business owner Michelle Coles has seen first-hand the impact of the power station's closure on the community.

"When you lose one of your major employers it affects the whole community because it affects not only those people who were employed at the power station, it affects every business," Ms Coles said.

"It just has such an incredible impact on the community."

Flinders Power' 'failed'

The council's submission made further reference to the power station's ash dam remediation.

The submission says Flinders Power failed to properly mitigate against dust storms.

It said in October 2016 Flinders Power used a chemical dust suppressant to control fly ash.

However, the submission said that in December 2016 severe storms "compromised the chemical dust suppressant seal".

Flinders Power is currently demolishing the Northern Power Station ( Supplied: McMahons )

"Despite these weather events being forecast well in advance, Flinders Power appeared unprepared," the submission said.

"[It had] no dust suppressant or aerial re-application on standby and no warning to the community to prepare for potentially hazardous conditions."

It also said Alinta Energy intended to liquidate Flinders Power "as soon as the reorganisation measures related to the ceasing of activities … had been completed.

"This leaves the Port Augusta community with little confidence that any contamination and ongoing site monitoring will be undertaken."

Flinders Power declined to comment, but said it had made its own submission to the inquiry which it expects will be published "in due course".