TAMAR VALLEY POWER STATION ISSUES COSTING CONSUMERS

While Hydro and Aurora Fight it Out, and Power Prices Surge

www.tas.greens.org.au
The Tasmanian Greens today reiterated their accusation that the Bartlett Government’s decision to use Aurora Energy to purchase the Tamar Valley power station (AETV) from Babcock and Brown has left the state with a financial anchor that is dragging down Aurora’ s bottom line, and driving up prices for everyday power users.

Greens Energy spokesperson Kim Booth MP said the new power station is also causing economic warfare between Aurora and Hydro Tasmania, with the Hydro recently gouging $20-odd million out of Aurora for a week’s worth of Frequency Control Ancillary Services Agreement (FCAS), in order to simply enable the AETV station to connect to the Tasmanian grid.

“The Greens warned that the purchase of the AETV power station, and especially the FCAS issue, would drive up power prices for everyday Tasmanian users and that is exactly what is happening now,” said Mr Booth.

“Now we hear that the government have lost control of these two GBE’s, which are fighting an economic battle that Tasmanian electricity users will ultimately fund.”

“Hydro and Aurora are locked into a power struggle that is preventing the AETV station from being able to compete in the Tasmanian energy market because Hydro are holding all the FCAS cards.”

“Without FCAS, there is no grid connection, and no grid connection equals no competition.”

“Hydro are able to prevent Aurora from competing against them by driving up Aurora’s costs, which means that Mum and Dad electricity users will pay more for their power.”

“The spectacle of the two Tasmanian Energy generators locked into an ugly battle for power whilst both are controlled by the same Minister speaks for itself.”

“This latest debacle will just add to the cost of living increases under Labor.”

“Instead of patting himself on the back in Parliament over this debacle, Energy Minister David Llewellyn needs to get to the bottom of the economic disagreements between Aurora and Hydro, sort out the FCAS issues at the AETV power station, and ensure that long-suffering Tasmanian residents are not charged even higher prices for their electricity as a direct result of his government’s failed energy strategy,” said Mr Booth.
Kim Booth MP Greens Energy Spokesperson