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Category: Electricity Energy and Utilities / Hydro Energy

Hydro Tasmania under spotlight over power crisis decisions

Thursday, 17 Mar 2016 08:06:43

A joint house parliamentary inquiry will examine Hydro Tasmania's decisions. (Tony Briscoe)

Hydro Tasmania needs to explain its decisions in the lead up to Tasmania's power crisis before a parliamentary inquiry, Energy Minister Matthew Groom says.

As the Minister faces sustained pressure from opposition parties over his handling of the prolonged energy crisis, Mr Groom has said Hydro Tasmania's board also had questions to answer.

Tasmania is grapping with an unprecedented energy crisis as dam levels drop and repairs to the Basslink undersea cable drag on.

The State Opposition has criticised the Government for approving Hydro Tasmania's planned sale of the Tamar Valley Power Station.

Hydro had begun the process of decommissioning the main gas turbine and looking for a buyer before the record dry conditions and the failure of the Basslink power cable forced a rethink.

Mr Groom told 936 ABC Hobart it was important there was is "a full and frank" examination of the whole situation, including the performance of the Hydro board.

"I've called for a joint house parliamentary inquiry to look into this," he said.

"I think when that happens there will be a very different perspective than some of the views out there."

Asked if the jobs of the Hydro board would be on the line he responded:

"There is no doubt at all that it's going to be looked at — the decisions that have been made. No question about and that could be the case," he said.

"It will go back some time."

Opposition Leader Bryan Green said Tasmanian consumers should be asked to conserve household energy, but the Minister said there was no expectation of mandatory energy savings from households.

"That is the advice we have consistently had, but we can all play our part," Mr Groom said.

In Parliament, Mr Green accused the Minister of selectively releasing information about key decisions made in the lead up to the worsening energy crisis.

He said Mr Groom was happy to release a letter he wrote to Hydro Tasmania relating to the sale, but is refusing to release advice on the same subject from his Cabinet colleague Treasurer Peter Gutwein.

"Minister, what did the letter say and Minister will you release this letter today so Tasmanians can have a crystal clear picture about the sale of the Tamar Valley Power Station?" Mr Green said.

Mr Groom turned the attack on the Opposition which oversaw the reduction of the preferred water storage minimum level when Labor was in power to allow Hydro Tasmania to take advantage of the carbon tax.

"The audacity of the Leader of the Opposition to come into this place and ask me if the Basslink cable is fried ... like it's my fault," he said.

Union concerned about Entura takeover

The union representing staff at Hydro's consulting division Entura said the workforce was crucial in monitoring assets during the state's energy crisis.

Hydro is negotiating a joint venture partnership with two subsidiaries of PowerChina that would leave it with a minority stake in Entura.

Professionals Australia fears there will be changes in the workforce.

Tasmanian director Luke Crowley has told 936 ABC Hobart that engineering and technical staff were playing a crucial role, especially with dam levels at record lows.

"Our additional concern is in a year's time if we have another crisis ... and we say 'Look we really need these 130 staff or a portion of them to help in Tasmania'. What happens if the new owner says 'Well look, that doesn't sit with our growth strategy, we're not going to give them to you'," he said.

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