Energy report highlights Government’s recklessness and secrecy

• Public Accounts Committee energy security report released today
• Report highlights the reckless decision to decommission and sell the Tamar Valley Power Station
• Treasurer’s “continuing refusal” to comply with the committee also confirmed

Labor welcomes the Public Accounts Committee’s report into energy security which confirms the Government’s role in the energy crisis and the Treasurer’s secrecy.

Shadow Energy Minister Scott Bacon said the Liberals can no longer deny they put the state in a vulnerable position by putting the Tamar Valley Power Station up for sale.

“Decommissioning the power station put Tasmania in a very vulnerable position,” Mr Bacon said.

“Matthew Groom and Peter Gutwein were prepared to risk Tasmania’s energy security in exchange for a $75 million cash grab.”

The summary of findings includes:

64. On 12 August 2015 Hydro Tasmania announced that it planned to sell the CCGT because it was not cost-effective and was not needed to provide energy security.

“The decision to decommission and sell the power station significantly contributed to the energy crisis which cost the state more than $150 million and put major employers at risk,” Mr Bacon said.

88. Tasmanian Minerals and Energy Council (TMEC) members were not consulted about divestment of the TVPS CCGT prior to the announcement of the Government’s decision regarding its proposed sale. 89. The proposed sale raised concerns of TMEC members regarding the due diligence and risk assessment undertaken prior to the Government’s announcement to sell the CCGT.

And the report is a reminder of the Treasurer’s refusal to cooperate with the Public Accounts Committee.

The report refers to the “continuing refusal of the Treasurer to provide the Committee an unredacted copy of a document titled “Sale of the Tamar Valley Power Station”, considered by the Committee to potentially contain essential information for the Inquiry.”

“Peter Gutwein’s failure to comply with the committee was a disgrace and proved he had something to hide,” Mr Bacon said.

“The Treasurer still has an obligation to hand over the letter he sent to the Energy Minister relating to the sale of the Tamar Valley Power Station.

“And the decision to put the power station on the market is still having an impact on gas contracts with long-term certainty for customers not secured.

“The report says “a timely and satisfactory resolution of this issue is necessary for certainty of prices for other gas users including small and medium businesses, major industry and residential customers”.”
Scott Bacon MP Shadow Energy Minister