Basslink boss labels Tasmanian Energy Minister 'irresponsible' over cable failure comments

Posted December 06, 2016 17:19:12

The head of Basslink claims the Tasmanian Government's rejection of its Bass Strait cable failure explanation is "misinformed", and the Energy Minister's statements about it are "irresponsible".

The six-month failure of the cable from December 2015, combined with low Hydro water levels this year, plunged the state into an energy crisis.

Basslink announced on Monday that an independent report had been finalised that showed the cause of the fault could not be determined, and was classified as a "force majeure", or chance occurrence.

The company commissioned international cable experts to test parts of the faulty cable, and Hydro Tasmania said it was considering the reports.

Energy Minister Matthew Groom told the media just hours after Basslink's announcement that the Government did not accept that position on the fault.

He said Tasmanians deserved to know further details about what caused the cable to break.

It was a move that Basslink chief executive Malcolm Eccles told 936 ABC Hobart was "misinformed".

"For a minister to come out and make such a bold statement without actually reading the documents proves to me he's either very misadvised, or he's a part-time international cable expert," he said.

"I think we should be leaving this to the experts.

"For a government minister to come out and reject that is very irresponsible."

Mr Eccles said Mr Groom had said the "complete opposite" to Hydro.

"They said 'thank you very much for the report, we will go away and read these reports'," he said.

Hydro stopped paying Basslink for use of the cable in September, but has made a "good faith" payment so negotiations can continue.

It believes it is owed money by Basslink for not being able to use the cable for six months since December 2015.

Mr Eccles said the payment was a "fraction" of what Hydro owed Basslink, but said details were commercial-in-confidence.

"We call on Hydro to accept that force majeure event and continue payments," he said.

Mr Eccles said Basslink had carried the cost of multi-million-dollar repairs to the cable.

"No single utility company would rely on a single asset, so to even contemplate relying on Basslink as a single asset for the state of Tasmania would be risk management madness," he said.

"You can't expect this one asset to be the be all end all for an approach to energy management."

Mr Eccles said 14 per cent of studied undersea cable faults were "cause unknown".

Labor backs Basslink 'reprimand' of minister

Opposition Leader Bryan Green said Mr Groom was at odds with Hydro, the government business he was responsible for.

"He stepped over the line yesterday," Mr Green said.

"To come out and suggest that the work that was done by Basslink was not believable was completely irresponsible.

"Basslink is an essential part of our energy security, and to be reprimanded by the the CEO says that relationship is being undermined," he said.

Topics: electricity-energy-and-utilities, industry, business-economics-and-finance, tas