Guy Barnett,Minister for Energy and Emissions Reduction
Consistent with the Tasmanian Government and Hydro Tasmania's decision in November last year to protect and progress Tasmania's legal rights in relation to the Basslink cable, Hydro Tasmania has taken another step in that process terminating the Basslink Services Agreement (BSA).
This follows the 2020 arbitration concerning the cause of the 2016 major Basslink outage, which found in the State and Hydro Tasmania's favour, confirming the link cannot meet the capacity requirements set out in the BSA and that the owner of Basslink should pay compensation to the State.
Since November last year, Hydro Tasmania along with the State, has been in negotiations with the receivers of Basslink regarding an alternative commercial arrangement.
The termination of the BSA will not impact Tasmania's energy security, which remains on firm footing, with very strong hydro storage levels, the Cattle Hill and Granville Harbour wind farms, while the cable will remain in service.
The Tasmanian Government and Hydro Tasmania will continue to engage with Basslink's financiers and receivers on alternative commercial arrangements, suitable for the receivership period.
Tasmanians can be assured that our energy security is stronger than ever and that the Government will continue to act in the best interests of Tasmanians.
