Basslink issues Notice of Dispute to Hydro Tasmania over unpaid fees relating to Bass Strait cable

BASSLINK is demanding Hydro Tasmania pay all money the government-owned business has withheld since a December 2015 outage that resulted in diesel generators being shipped into the state.

BASSLINK is demanding Hydro Tasmania pay all money the government-owned business has withheld since a December 2015 outage that resulted in diesel generators being shipped into the state.

Late on Friday, Basslink accused Hydro of failing to pay facility fees and other costs the cable operator believes it is owed, arguing it was incorrectly being held liable for the almost six-month cable outage.

Neither party has agreed on what caused the problem, with an independent inquiry from Cable Consulting International commissioned by Basslink finding the cause of the fault was unknown.

Repairs to the Basslink undersea power cable.

Hydro Tasmania has blamed degradation of the cable caused by overuse from Basslink and does not accept the latter company’s claim it was a “force majeure” (unavoidable) event under their contract.

Basslink has issued Hydro Tasmania with a Notice of Dispute.

“By issuing the Notice of Dispute, Basslink seeks to recover the withheld monies from HT,” the company said in a statement.

Hydro Tasmania chief executive Steve Davy said the ongoing dispute between his company and Basslink would not have an impact on energy security in Tasmania.

“Hydro Tasmania will manage this process in the best interests of the business and Tasmania,” he said.

The Tasmanian Government is in arbitration with Basslink after demanding more than $100 million in compensation earlier this year.

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It also does not accept Basslink’s assertion the cause of the 2015 outage was “unknown”.

A Government spokesman said: “The Tasmanian government notes the latest public statement by Basslink in relation to its Basslink Services Agreement with Hydro Tasmania.

“The state, as the party to the Basslink Operating Agreement, is involved in its own legal dispute to recover the costs of the major Basslink outage experienced in late 2015 and early 2016.

“It would be inappropriate to comment further while the arbitration process is underway”.

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