Economy
Watchdog probes Hydro
ABC
Australia’s competition watchdog is investigating claims Hydro Tasmania has misused its market power.
The ACCC was responding to the state Energy Regulator’s concerns that Hydro charged almost $10 million a week for its services over three weeks in March. At other times of the year, those services cost $50,000 a week.
The Regulator found the high pricing adversely affected competition among power generators including the state-owned Aurora Energy. It also resulted in one generator delaying its expansion.
Peter Gutwein: “It raises serious questions in regard to why government-owned businesses might be allegedly behaving in this way towards each other.”
The Treasurer Michael Aird says it’s inappropriate for him to comment on the ACCC investigation.
“I think they are the appropriate authority to investigate this matter and to report.”
It’s not clear if the pricing arrangements flowed on to customers.
Examiner
HYDRO Tasmania is under investigation by Australia’s competition watchdog over a series of significant price hikes for services to other generators earlier this year, the State Government has revealed.
A report on the Tasmanian Energy Regulator’s website has shown that over a three-week period earlier this year, Hydro charged more than
$27.3 million for services that would normally cost less than $60,000 a week.
The regulator’s report said the high pricing sparked complaints from some Tasmanian generators – saying that Aurora’s Tamar Valley Power Station ceased generating at times of high prices, as the cost exceeded the revenue it could make.
“This delayed the commissioning of its generators,” the report said.
“Another generator affected by Hydro Tasmania’s bidding strategy has indicated that Hydro Tasmania’s behaviour has put its expansion plans on hold and the risk of this behaviour in the future may force its closure.”
It is understood the second company to complain is South Australian-based Landfill Management Services, which operates two landfill gas-fuelled generators in Launceston.
In Parliament yesterday, Treasurer Michael Aird confirmed the Australian Competition and Consumer Commission was investigating Hydro Tasmania.
“As they will be producing a report, I think it is inappropriate for me to comment about that before we hear the results,” he said.
Opposition treasury spokesman Peter Gutwein said Mr Aird needed to answer a number of serious questions relating to the investigation – including when he was first aware of the matter.
An Aurora spokesman said it would be inappropriate for the company to comment while the ACCC was investigating the matter, saying the company would co-operate with any investigation. A Hydro Tasmania spokeswoman said the organisation was committed to working through the issues raised by the ACCC.