Major industrials warned gas prices could rise by 95%
Matthew Groom could have made sure a gas deal was finalised years ago
The decision to sell the Tamar Valley Power Station has led to the situation we now face
The gas price crisis putting Tasmania’s biggest employers at risk is a direct result of Matthew Groom’s incompetence and decision making.
Shadow Energy Minister Scott Bacon said the Minister must take full responsibility.
“A 95% increase in the price of gas will have devastating consequences for Tasmania’s biggest employers,” Mr Bacon said.
“Our major industrials cannot afford to be hit this hard.
“And it all comes down to Matthew Groom’s failure to secure a gas contract that was in Tasmania’s best interest.
“The Government’s own Energy Security Taskforce recommended that commercial terms be finalised by the end of March and the deal be formally in place by June.
“Those deadlines have of course now passed.
“The Minister has allowed this situation to go on for too long, creating massive uncertainty.
The CEO of the Tasmanian Gas Pipeline, Lindsay Ward, gave evidence to the energy security inquiry in August last year.
“They were obviously negotiating in full knowledge that they were going to terminate the Tamar Valley Power Station at the time and my opinion is that’s not negotiating in good faith, they should have been upfront about that.”
“If you look at the negotiations through 2014 and early 2015, those negotiations were very difficult and in my view one sided, and the result, the reason for that, we didn’t understand at the time, was Hydro’s decision to close, mothball, sell the Tamar Valley Power Station. That was still their position in November 2015 and that was made very clear to us.” (Lindsay Ward, Tasmanian Gas Pipeline)
“The Minister’s reckless decision to sell the power station prevented a deal on gas being struck,” Mr Bacon said.
“That decision now could have devastating consequences.
“By wanting to sell the power station, Matthew Groom sold out our biggest and most important employers.”
Scott Bacon MP Shadow Minister for Energy