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Category: Hydro Energy / States and Territories / Electricity Energy and Utilities

Hydro Tasmania assured over outages days before Basslink fault

Wednesday, 20 Apr 2016 06:53:03

Repairs on the Basslink cable are not expected to be completed until mid-June. (Supplied: Basslink)

Hydro Tasmania's risk management committee was given assurances the state-owned company was prepared for a long-term Basslink failure just days before the cable went down, documents reveal.

Key points:

  • Hydro asked about outage plans given Basslink reliance
  • Committee assured it was adequately prepared
  • Energy analyst predicts household prices could rise

Tasmania is in the midst of an energy crisis because of the Basslink outage and record low dam storage levels.

The power cable linking Tasmania with Victoria failed on December 20.

Minutes from a Hydro Tasmania risk management committee meeting held five days earlier show members were aware that was a possibility.

Right to Information documents show the committee "questioned whether the risk relating to an unplanned outage of Basslink for 60 days or longer was appropriately assessed in light of Tasmania's increased reliance on importing electricity from Victoria".

In response to a question at the meeting, it was stated Hydro was adequately positioned for such circumstances.

The cable has now been out of action for 122 days and is not expected to be repaired until mid-June.

Opposition Leader Bryan Green said the documents raised questions about whether concerns about energy security raised by the committee were taken seriously by Hydro and the Tasmanian Government.

He said last May the committee identified there was a "high" risk of energy shortages that could have a "catastrophic" impact.

He wants Energy Minister Matthew Groom to explain whether he was aware of the warnings.

The Tasmanian Government has installed diesel generators and restarted the Tamar Valley Power Station to help boost electricity supplies.

Dam levels have dropped to 13.4 per cent and forecast rain is not expected to replenish water levels for some time.

Power prices tipped to rise

An energy analyst believes household electricity bills will rise as a result of the energy crisis.

Marc White said market spot prices were increasing with demand.

He predicted retailers like Aurora would likely have to pass that onto consumers.

"We would expect that because the forward contract market has increased, would expect something like $55 per annum per customer would be the order of simply that wholesale market increase," he told 936 ABC Hobart.

The energy regulator will review market prices in June.

He believed more of Tasmania's major industrials could strike deals to reduce their energy consumption over the next six to eight weeks.

"Our interpretation is if there's major industries that have been sitting on the sidelines waiting for a stronger price signal, the price signal is there in the market now," he said.

Hydro Tasmania and the Government have been contacted for comment.

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