The Hodgman Liberal Government is working closely with our energy businesses to ensure they are managing their costs more prudently and are focused on delivering a higher quality customer service.

The former Labor-Green Government burdened Hydro Tasmania when they transferred the debt associated with the purchase of the gas-fired Tamar Valley Power Station (TVPS) in 2013.

Labor inexplicably paid $160 million above the actual value for the TVPS. Tasmanian taxpayers have been forced to bear the burden of this additional debt.

As outlined at GBE Estimates last year, Hydro has been considering the option of divesting the combined cycle gas turbine at the TVPS and running the remaining turbines as peaking units. This turbine has been sitting unused since June 2014.

The Government has today given approval for Hydro Tasmania to decommission and sell the combined cycle gas turbine. This will allow Hydro to rid itself of a redundant liability and reduce its debt.

Hydro operates in a highly dynamic and competitive market. This Government will support Hydro in its efforts to be right at the forefront of power generators in Australia and to deliver on the historic investment in Hydro that generations of Tasmanians have made.

Hydro Tasmania has consulted with staff and unions today about the changes and providing appropriate support. Hydro Tasmania will seek to maximise redeployment opportunities through this period and minimise job losses.

The Government remains focused on implementing the Tasmanian Energy Strategy and once again making energy a competitive advantage in order to deliver the lowest sustainable electricity prices and ensure businesses can operate in a competitive environment.
Matthew Groom, Minister for Energy