Hydro’s $90 million loss

Grant Every Burns

CHAIRMAN Grant Every-Burns said most of the impact of responding to the energy supply challenge would occur in the current financial year, with some cost carried over to 2016/17.


“The period in question was very dry by any reckoning, containing a number of sequences
each representing the driest in 100 years,” Mr Every-Burns said.

“Within that same period the Basslink cable failed. The consequences of this failure were
magnified by a repair time amounting to 176 days against our prior expectation of 60 days.

“In my 45 years’ experience in the power industry as a power engineer, senior executive and
board Director I have rarely seen a situation more difficult than that recently faced by
Tasmania and I have never seen a response so effectively executed.

“The cost of the Energy Supply Plan is substantial, but we recognise the absolute importance
of maintaining confidence in energy supply given its economy-wide significance.”

Hydro will record a loss of $90 million but Mr Every-Burns said the business intended to build storages and target a break-even or small positive financial result for 2016/17.

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