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Challenging all the energy opportunities

Monday February 26

The announcement by Labor to reset Hydro Tasmania’s Charter and to step back from Tasmania’s financial obligations with Marinus Link shows a strong willingness to consider structural changes that have the potential to be a more enduring legacy.

The national electricity landscape has changed significantly in the last few years and Tasmania should be reevaluating how to best leverage its strengths against the National Energy Market.

The structural changes outlined by Labor will take longer to take effect, so price capping and rebates remain appealing in the short term. In saying that, TMEC calls on the Charter to be updated within the first one hundred days of being elected.

Ray Mostogl, CEO of TMEC said, “The profitability of Hydro Tasmania is a key revenue source for the Tasmanian Government and therefore the entire population benefits, therefore changes to Hydro Tasmania’s financial model should include improving efficiencies rather than just accepting less revenue.”

All large entities accumulate inefficiencies along the way, and I do not believe Hydro Tasmania would be immune to this.”

The Tasmanian Minerals, Manufacturing and Energy Council (TMEC) has long queried why have Tasmanians been slugged with the price penalties of a dysfunctional National Energy Market and how best to apportion the investment and repayments of Marinus Link and North West Transmission Development.

The industry welcomes Labor’s boldness and willingness to look for structural reforms as outlined in their announcement.