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Hydro Tasmania Annual Report 2020-21
Media release – Hydro Tasmania, 28 October 2021
Delivering strong results and transforming for the future
Chairman Grant Every-Burns said Hydro Tasmania’s annual profit of $217 million was comfortably above the corporate target, driven by favourable trading conditions in the National Electricity Market, and a strong dividend return will be delivered for the people of Tasmania.
“This is a solid and pleasing outcome in a year of below average inflows. We also maintained a secure level of energy, exceeding our storage targets and consistently remaining above the required High Reliability Level,” Mr Every-Burns said.
“We continued our strong support for the Tasmanian community through difficult times. We stepped up our COVID-19 support to help communities and our state recover. Our dedicated COVID-19 Recovery Program supported local business, not-for-profits and community groups with more than $200,000 in funding, bringing our total COVID-19 program funding to $450,000.
“We also saw significant progress for our Battery of the Nation ambitions, with Lake Cethana announced as our preferred site for pumped hydro development and a new future outlined for the Tarraleah hydropower scheme. The Tasmanian and Australian Governments confirmed their strong support for Tasmania’s energy future through a new agreement that sets out a pathway for realising this opportunity,” he said.
Hydro Tasmania’s Acting CEO Ian Brooksbank expressed his pride at the ongoing effort of Hydro Tasmania’s people to underpin another year of significant achievement.
“None of these results could be achieved without the passion, dedication and commitment of our people. The COVID-19 pandemic continued to cause disruption to our business, but our people adapted to ensure we kept the lights on in Tasmania,” Mr Brooksbank said.
“Our people continued to deliver for Tasmania through a period of business transformation. This realignment of our organisation will give us the agility to adapt to market disruption and take advantage of the opportunities presented by the clean energy transition.
“We saw adaption and innovation right across our business, with Momentum Energy and Entura again also delivering strong results for their customers,” he said.
Highlights from the 2020-21 Annual Report include:
- We reported another strong yearly result for the people of Tasmania, with a profit of $217 million, 20 per cent above our corporate target of $180 million.
- We continued to keep our people safe, achieving a below target Total Recordable Injury Frequency Rate (TRIFR) of 4.18.
- Our community support was recognised nationally, with the COVID-19 Recovery Program announced as the winner of the Clean Energy Council’s 2021 Community Engagement award.
- Our Net Trust Score increased – this is a measure of the trust the Tasmanian community places in us.
- Ongoing modernisation and maintenance of our hydropower generation assets, including significant progress on a multi-year $80 million refurbishment program for Trevallyn, Catagunya and Lake Echo power stations and the first stage of work on a $20 million upgrade to the Murchison Dam spillway capacity.
- Generation asset performance remained strong, with average portfolio availability above target for the year.
- It was a great year for Tasmania’s fauna, with Hydro Tasmania installing an innovative eel bypass, supporting research into curing mange in wombats and rediscovering a once-thought extinct species of crayfish in our waterways.
- The eel bypass at Trevallyn Dam won the Regional Infrastructure Project Award at the Australian Water Association (AWA) Tasmanian Water Awards.
- Through a number of new sponsorships and partnerships, we opened up opportunities in community sport, mentoring Tasmanian women in their careers, supporting young LGBTIQ+ tertiary students, new pathways for young people transitioning to employment and supporting mentally healthy workplaces.
- Momentum Energy grew, adding an additional 7,000 customer sites. This growth was underpinned by an expansion into the Queensland electricity market.
- Entura was appointed by Australia’s Department of Foreign Affairs and Trade to the panel of preferred service providers for the Australian Infrastructure Financing Facility for the Pacific (AIFFP). This positions the business well for expanding the pipeline of power and water projects in the Pacific region.
Hydro Tasmania’s 2020-21 Annual Report was tabled in State Parliament today and is available on our website.
Media release – Guy Barnett, Minister for Energy and Emissions Reduction, 28 October 2021
Hydro Tasmania delivers strong results
Hydro Tasmania has continued to perform well despite another challenging year dealing with the impacts of COVID-19.
The annual report tabled today shows that Hydro Tasmania has delivered a strong dividend return for Tasmania from an annual profit of $217 million, which was 20 per cent above the target of $180 million, aided by favourable trading conditions in the National Electricity Market.
Storage levels were also maintained consistently above the required High Reliability Level despite a year of below average inflows and currently sits at 51.4 per cent, which is the highest since 2014.
Hydro Tasmania has also been able to help the Tasmanian community with a dedicated COVID-19 Recovery Program for local businesses, not-for-profits and community groups with $200,000 in funding this year as part of an overall $450,000 package.
This program won the national Clean Energy Council Award for Community Engagement earlier this year.
The Battery of the Nation project is also advancing with Lake Cethana announced as the preferred site for pumped hydro development along with a proposal to double the capacity of the Tarraleah power station.
There is ongoing modernisation and maintenance of other hydropower generation assets, including significant progress on a multi-year $80 million refurbishment program for Trevallyn, Catagunya and Lake Echo power stations and the first stage of work on a $20 million upgrade to the Murchison Dam spillway capacity.
Congratulations also to the team behind the innovative eel bypass at Trevallyn Dam which won the Regional Infrastructure Project Award at the Australian Water Association Tasmanian Water Awards.
Hydro Tasmania’s 2020-21 Annual Report can be viewed here: Hydro Tasmania website.
Dean Winter MP, Shadow Minister for Energy and Emissions Reduction, 28 October 2021
Obscene payouts to Hydro executives as families struggle with basic cost of living
Hydro Tasmania paid out almost $2.4 million in the past year to already well-paid executives in an obscene waste under the Gutwein Liberal Government.
Shadow Energy Minister Dean Winter said four executives shared in the redundancy windfall at the same time the GBE pushed dozens of other employees on to the unemployment queue.
“It’s just disgraceful that these excessive amounts are being paid out to an elite group of executives just for exiting this organisation,” Mr Winter said.
“Under the Liberals’ watch, the excess is obscene and will disgust Tasmanians.
“I defy the responsible Minister Guy Barnett to front Tasmanians and explain how these payments can be justified, including to one individual who received a golden handshake of $965,000 as he walked out the door.
“I challenge Mr Barnett to justify how another former employee walked away with $669,000.
“At the same time as this government allows this, Tasmania’s housing wait list has reached an historic high and thousands are stuck on the Liberal Government’s waiting list for elective surgery and dental work.
“At the same time families are struggling with basic cost of living and Hydro’s annual report has been released on the same day we learn that Tasmanians pay the most overall on energy bills of any state.
“Mr Barnett needs to tell ordinary Tasmanians how these payouts are acceptable.
“And at the same time, Mr Barnett should be honest with Tasmanians about additional payouts.
“The government remains embroiled in a cover-up about the level of compensation handed to the immediate past Hydro CEO and has not released any detail about the reasons behind his departure or how much he received for leaving.”
Rosalie Woodruff MP | Greens Energy spokesperson, 28 October 2021
Hydro’s Overseas Operations Still a Mystery
Annual reports are meant to shine a light on the operations of Tasmania’s public entities, but Hydro’s 2021 report fails again to detail anything about their overseas activities.
Hydro has undertaken significant work in international jurisdictions, and owns businesses based in South Africa and India. Hydro has had documented involvement in projects riddled with human rights and environmental issues in, at least, Uganda* and Malaysia**.
Late last, year the Greens uncovered the involvement of Entura – Hydro’s consulting business – since 2016 in projects in 31 countries.*** This year’s annual report points to that number having grown, with a new financial adviser in Kyrgyzstan listed in the Procurement Summary.
Flicking through Hydro’s annual report, however, you’d have barely a clue they’re involved in any operations overseas at all.
Although Hydro may not be legally bound to share information about their international work with the Tasmanian people, in the interests of transparency they absolutely should. The company is, after all, a publicly-owned company that’s supposed to be working in our best interests. If there’s any involvement in nefarious human rights or environmental projects, we have a right to know.
We expect the vast majority of Hydro’s work has been positive and without issue, but given the company’s past misadventures it needs to be as transparent and accountable as possible.
* https://www.abc.net.au/news/2020-07-04/greens-slam-hydro-tasmania-entura…
** https://www.abc.net.au/news/2012-12-06/hydro-defends-sarawak-project/441…
*** https://drive.google.com/file/d/1lLp8wYhlyzBfVwuNHkStxBGDmi4wxOk3/view?u…