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Hydro Tasmania boss hits back at industrial sector criticism

Monday, 15 Aug 2016 12:03:30 | Richard Baines

Hydro has been accused of not being effective for six years. (ABC News: Richard Baines)

The head of Hydro Tasmania has used a parliamentary inquiry to hit back at criticism from the boss of the state's biggest power user.

Key points

  • Industrials criticise Hydro at energy crisis inquiry
  • Hydro boss accuses them of making 'disparaging' comments
  • Flood authority says state of Tamar River is a national disgrace

Almost two weeks ago the head of Bell Bay Aluminium, Ray Mostogl, told a parliamentary inquiry into the state's energy crisis that the state-owned power companies had not been effective for six years.

The inquiry is examining the circumstances of this year's energy crisis when an extended Basslink outage combined with record-low Hydro dam levels.

Mr Mostogl was also critical of a lack of investment in gas and issued an ultimatum for the Government to deliver on its energy supply plan or "step aside and let someone who can".

At the inquiry today Hydro Tasmania's chief executive Steve Davy hit back.

"We find these assertions odd given six years ago we signed a new agreement with Rio Tinto Bell Bay," he said.

"Despite all the support from the state-owned energy businesses, aluminium businesses in Australia struggle, this is about international markets, it's not about a lack of understanding or support for these businesses," he said.

Mr Davy also took a swipe at Tasmanian Gas Pipeline's testimony, accusing the company of trying to "disparage" Tasmania's monopoly power supplier and advantage their own commercial interests.

Hydro has been accused of failing to secure gas contracts prior to a boom in prices.

"The remarks from Tasmania Gas Pipelines are simply designed to disparage Hydro Tasmania and to strengthen the bargaining position of this private company," Mr Davy said.

"This is exactly the sort of behaviour the ACCC is trying to prevent.

"It is our view that the committee should question the majority of the assertions by Tasmania Gas Pipeline."

Parts of Tamar 'a national disgrace'

Earlier, the Launceston Flood Authority used the inquiry to again push for Hydro Tasmania to do more to help flush silt from the Tamar River.

Hydro's Trevallyn dam prevents the flow of water in parts of the Tamar, which has problems with silt levels.

The authority's Alan Birchmore told the inquiry Hydro should release more water because a lack of flow had impacted on the effectiveness of silt removal in recent years.

He said parts of the river still had serious problems.

"Between Kings Bridge and Tailrace, the Tamar Estuary is nothing short of a national disgrace," he said.

"It has huge readings of enterococcus bacteria and so on because there is this cluster of sewage plants where the South Esk and North Esk meet and form the Tamar estuary."

Mr Birchmore argued diverting some of the water way from power generation would be a relatively inexpensive move.

"If you look at Hydro's profit then this particular power station is a small contributor to its profit, then I think it's fair to say the amount of loss to Hydro would be quite small," he said.

"But if you asked Hydro they would say it is huge, because they would use the sales loss rather than the impact on state benefit."

The inquiry also heard from Engineers Australia, as well as the Renewable Energy Alliance.

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