Politics
Power-less
By Nick Clark, The Mercury
Kevin Fraser, a Hobart-based investment banker with energy sector experience, said Basslink was a disaster.
“It has been admitted that Basslink has a significant negative impact on the balance sheet and on its credit rating,” Dr Fraser said. “The Government needs to sack the board and the chief executive officer.
“At the very least the Auditor-General should undertake a specific inquiry into Basslink.”
The Hydro will pay $2.3 billion to use Basslink over 25 years.
“Hydro has long stated that Basslink is a good financial investment but when this position became untenable they switched to say Basslink provided security of supply,” Dr Fraser said.
“But the repowering of the Bell Bay power station means that is a complete crock.”
Bell Bay Power Pty Ltd is expected to be separated from the Hydro by July 31.
The firm had an operating cash loss of $13 million in 2004-05. It has total assets of $53.6 million compared with liabilities of $53.2 million giving net assets of $374,000.