Net tightens around Energy Minister Matthew Groom

Bryan Green MP
Labor Leader 20 June 2016

• Energy crisis hearing reveals the Government was willing to risk load shedding
• Groom pushed ahead with the sale of the Tamar Valley Power Station despite being warned of the consequences
• Power station was mothballed from August 2015
• Decision to decommission the power station cost Tasmania a fortune

The net is tightening around Energy Minister Matthew Groom on the first day of parliamentary hearings into the crisis.

It’s been revealed that the Government agreed to the sale of the Tamar Valley Power Station in the full knowledge that load shedding would be required for residential customers if a Basslink outage coincided with low inflows.

“The Government was advised by Hydro Tasmania of the huge consequences of getting rid of the power station and gave approval for its sale anyway,” Mr Green said.

“Hydro Tasmania executives were cagey and evasive but eventually confirmed that the reassurance the TVPS was not required for energy security was based on modelling that included residential load shedding.

“The Liberals were willing to risk the possibility of load shedding for residential and commercial customers.

“A scenario similar to the one modelled by Hydro played out less than 6 months after the Government approved the sale.

“The Government needed to fire up the power station to keep the lights on.

“Matthew Groom must immediately release all advice he received from Hydro Tasmania, including modelling around residential load shedding.

“It has also been confirmed today that the Government’s requirement for Hydro to deliver a $75 million dividend was contingent on the Combined Cycle Gas Turbine being sold.

“Ironically, Mr Groom’s decision to sell the power station has actually cost the state $180 million.

“Not to mention the enormous financial impact on Tasmania’s biggest energy users, including Bell Bay Aluminium.

“The net is tightening around Matthew Groom.

“Evidence given to the PAC confirms the power station went from being in dry layup to being completely mothballed after August 2015.

“TasNetworks confirmed today that the Combined Cycle Gas Turbine was shut down entirely and removed from the energy supply mix.

“Therefore it took two and a half months to turn it back on and the delay cost Tasmanians dearly.

“$60 million was spent on temporary diesel generation to create less than 60 Gigawatt hours of energy.

“Running the power station earlier would have saved the state a fortune.

“The Government can no longer perpetuate the idea that its management of the power station was routine.

“As dam levels fell, Matthew Groom took the unprecedented decision to shut down and sell Tasmania’s energy security insurance policy.”
Bryan Green MP Labor Leader