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Poor Energy Decisions Cost State

Kim Booth

Kim Booth  -  Thursday, 4 December 2014

Tags: Hydro Tasmania, Treasury

Hydro Tasmania’s Government Business Enterprise Committee hearings (GBEs) revealed that recent poor decisions made in the state’s energy sector will cost an estimated staggering $700 million over the next six years, Greens Leader and Energy spokesperson Kim Booth MP said today.

“Six year modelling by Hydro shows the GBE’s projections consist of a massive total of $97,687,737 loss on power purchase agreements (PPA’s) with Chinese company Shenua, given as a deal sweetener when Hydro Tasmania sold them the wind farms,” Mr Booth said.

“The projections also consist of a whopping total loss over six years of $44,702,617 on the Bairnsdale gas power operation entered into to support Momentum.”

“Today’s GBE committee also finally saw the admission that the contentious Basslink connection will cost Tasmania a catastrophic total of $552,601,199 over the next six years.”

 “Once again we hear that the Tamar Valley Power station, which the Greens warned at the time was a dud purchase by the State, has seen approximately $350 million of taxpayers’ money wasted on this stranded asset.”

“These bad decisions tally up to over one billion dollars lost.”

“That is one billion dollars of public money which could have built a new hospital or kept employed those teachers, nurses and police who are now facing the sack due to budget constraints.”

“The Energy Minister, Matthew Groom, needs to learn from these costly mistakes, and ensures he gets out of the way and stops interfering with Hydro, to ensure the GBE makes financially viable decisions rather than politically expedient ones.”

“After all it is the public who pay the price for these staggering losses.”

“These staggering losses are now built into the state’s energy sectors accounts,  and are the direct result of poor management and political interference in the energy sector in Tasmania,” Mr Booth said.