Hydro saved Tasmania Really?

Hydro saved Tasmania from shocking electricity price hikes, says energy regulator

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HYDRO saved Tasmania from shocking electricity price hikes in 2012-13, a report by the Australian Energy Regulator says.

The State of the Energy Market report found average Tasmanian electricity bills rose by 3 per cent because of the carbon tax, compared with a 12 per cent hit in the ACT.

AER chairman Andrew Reeves said Tasmania's high concentration of hydro power kept bills down.

"The average carbon pass-through-to-spot electricity prices during 2012-13 was broadly consistent in mainland regions at $17.70 per MWh but significantly lower in Tasmania at $10 per MWh," he said.

The carbon tax of $23 a tonne, introduced in July 2012, helped Hydro Tasmania to an operating profit of $238 million as it received higher prices without having to pay the tax.

In his annual report Tasmanian Auditor-General Mike Blake found the gas-powered Tamar Valley power station cost almost $17 million in carbon tax.

AER's report said the tax added 12 per cent to the average ACT power bill, followed by Queensland (9 per cent), Victoria (8 per cent), NSW (7 per cent) and South Australia (4 per cent).

The Coalition Government has said the repeal of the carbon tax would result in an average fall in bills of 9 per cent. But the AER report suggests the repeal would result in only a 3 per cent fall in Tasmania.

The Office of the Tasmanian Economic Regulator is believed to have decided yesterday on a new price determination from January 1.

Sourced from The Mercury

So all of the price rises over the last year have been to prop up Aurora more then create this so called buffer! As Tasmanian people are paying a carbon tax on hydro generated power but that same power when sold via Bass Link is carbon tax free! So who saved who? 😐

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Yet Another Surprise? (Not)

Hydro deep in the red

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THE State Government will examine Hydro Tasmania's debt level after it posted a $248 million loss last financial year, just days after talking up its operating profit.

Hydro was stung by taking on the Aurora Energy Tamar Valley power station, the acquisition of which wiped $335 million off its books in asset writedowns.

Hydro has debt levels of $866 million after the gas-powered station was transferred at a cost of $205 million from Aurora Energy to Hydro under government energy reforms.

The loss is distinct from last week's before tax operating profit of $238 million, which was mainly a result of record sales of carbon-free electricity across Basslink.

Chairman David Crean said the loss was largely as a result of taking on AETV and its associated debt as well as the revaluation of hydro generation assets.

"The Government has committed to reviewing our capital structure in 2013-14 to assess the sustainability of Hydro Tasmania's balance sheet following the transfer of debt from AETV," Dr Crean said.

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The likely abolition of the carbon tax exacerbated the writedowns of hydro power stations.

"In recent years the value of generation assets increased as a result of the introduction of a price on carbon," he said.

However, as a result of a range of factors, including a reduction in forecast energy and carbon prices, the value of generation assets was revised downward in 2013.

Liberal Energy spokesman Matthew Groom said it was a $330 million Government stuff-up and that the Government had tried to cover it up.

Deputy Premier Bryan Green said the revaluation of the Tamar Valley power station was a necessary adjustment under accounting standards to reflect the way it would be operated in future.

He said the loss did not affect Hydro Tasmania's cash position and that the station was an important asset.

The Aurora Energy Tamar Valley power station has barely operated since early July, generating just 3.34 gigawatt hours compared with an average of 34 GWh a week under Aurora.

But Hydro chief executive Steve Davy said operation would resume when the current high rainfall inflows to hydro storages and rivers stopped.

Sourced from The Mercury

So what's the real story here? Aurora makes a before tax profit, yet Hydro makes a loss. This clearly means that Hydro isn't a competitive player! Just goes to show that even if the government does eventually open up the retail market for the general consumer there's no guarantee that the retail costs will be lower if the local power generation company's can't even balance the books!

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It's No Wonder (we're feeling bitter)

Hydro Tasmania records historic before-tax profit of $238 million

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ENERGY giant Hydro Tasmania has recorded the largest profit in its history.

The company is crediting increased revenue from renewable exports, the carbon price and increased exports across the Bass Strait for a $238 million before-tax profit for the 2012-2013 financial year.

The result will bring an expected return to the Tasmanian Government during the 2013-2014 year of $263 million — including a dividend of $116 million.

During 2012-13, the business returned $125 million, including a dividend of $51 million.

Hydro Tasmania chair David Crean said Hydro Tasmania expected to return more than $450 million to the state in the next two years.

"This was a year in which the true value of the state's 100-year investment in renewable energy was finally realised," Dr Crean said.

"The performance is also notable for the increased proportion of our revenue and profit which comes from the mainland.

"At the same time we continue to be a major purchaser of Tasmanian goods and services with almost $125 million spent locally during the year." Deputy Premier Bryan Green said today record returns from the Hydro to Tasmanian taxpayers demonstrated the importance of keeping the business in public hands.

"This shows the enormous value of Hydro Tasmania and the dividends it pays helps ensure the Government is able to invest in core services like hospitals, schools and police," Mr Green said.

"That is why we have decided not to sell or break up Hydro Tasmania or privatise our network of poles and wires that deliver electricity to homes and businesses around the state."

Key results

OPERATING profit before fair value movement and tax: $238 million

OPERATING cash flow : $262 million

CAPITAL works on hydro asset program : $58 million

TOTAL group revenue : $1578 million

RETURNS to government 2012/13 $125 million

EXPECTED returns to government 2013-14: $263 million

Sourced from The Mercury

Is it any wonder why when the topic of power price gets a mention most people just see red! This latest figure clearly shows that the Tasmanian Government is gouging as much money possible before the electricity market becomes open to commercial competition (if that still goes ahead) Tasmanians have been feeling the pinch for too long when it comes to electricity costs and this report simply rubs salt into those wounds.

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It's No Wonder (we're feeling bitter)

Hydro Tasmania records historic before-tax profit of $238 million

image

ENERGY giant Hydro Tasmania has recorded the largest profit in its history.

The company is crediting increased revenue from renewable exports, the carbon price and increased exports across the Bass Strait for a $238 million before-tax profit for the 2012-2013 financial year.

The result will bring an expected return to the Tasmanian Government during the 2013-2014 year of $263 million — including a dividend of $116 million.

During 2012-13, the business returned $125 million, including a dividend of $51 million.

Hydro Tasmania chair David Crean said Hydro Tasmania expected to return more than $450 million to the state in the next two years.

"This was a year in which the true value of the state's 100-year investment in renewable energy was finally realised," Dr Crean said.

"The performance is also notable for the increased proportion of our revenue and profit which comes from the mainland.

"At the same time we continue to be a major purchaser of Tasmanian goods and services with almost $125 million spent locally during the year." Deputy Premier Bryan Green said today record returns from the Hydro to Tasmanian taxpayers demonstrated the importance of keeping the business in public hands.

"This shows the enormous value of Hydro Tasmania and the dividends it pays helps ensure the Government is able to invest in core services like hospitals, schools and police," Mr Green said.

"That is why we have decided not to sell or break up Hydro Tasmania or privatise our network of poles and wires that deliver electricity to homes and businesses around the state."

Key results

OPERATING profit before fair value movement and tax: $238 million

OPERATING cash flow : $262 million

CAPITAL works on hydro asset program : $58 million

TOTAL group revenue : $1578 million

RETURNS to government 2012/13 $125 million

EXPECTED returns to government 2013-14: $263 million

Sourced from The Mercury

Is it any wonder why when the topic of power price gets a mention most people just see red! This latest figure clearly shows that the Tasmanian Government is gouging as much money possible before the electricity market becomes open to commercial competition (if that still goes ahead) Tasmanians have been feeling the pinch for too long when it comes to electricity costs and this report simply rubs salt into those wounds.

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As expected…

Deputy Premier Bryan Green says sale of Tasmanian energy company Aurora's customer base off agenda after Treasury advice

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RETAIL competition for Tasmanian energy companies is up in the air with the State Government taking the sale of Aurora's customer base off the table.

Deputy Premier Bryan Green this morning admitted there would not be full retail contestability in the energy market at the start of next year as previously promised.

Mr Green said selling Aurora's customer base was off the agenda after advice from Treasury.

He said the sale needed to meet three objectives:

DELIVER competition in the electricity market.

OFFER a fair and reasonable price.

MINIMISE the residual risks and liabilities to the state.

"It is with disappointment that I inform the House that I have recently been advised that the divestment of Aurora's retail customers is unlikely to achieve these objectives at the current time," Mr Green told Parliament in a ministerial statement this morning.

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"I have been advised by Treasury that it does not believe that the current divestment process will achieve a fair and reasonable price at this time for Aurora's retail customers.

"In these circumstances, the Government has decided that continuing with the current divestment process would be neither appropriate nor responsible."

Mr Green said legislation that has already passed Parliament would allow for retail contestability in the future.

The cost of the move toward retail contestability has added up to $36.5 million, a document tabled in Parliament this morning shows.

Opposition Energy spokesman Matthew Groom, who supported the electricity reforms, said it was not the policy that was the issue.

"This is about the Government's botched reforms – not the policy," Mr Groom said.

"Tasmania must be bewildered when the minister said it was a core element of reform … and it has failed."

Both Mr Groom and Mr Green disputed claims made by Greens energy spokesman Kim Booth who said the Tasmanian wholesale energy market should have also been opened up for competition.

Mr Green said the Greens policy could lead to the sale of Hydro.

"If we did what you wanted to do, there is no coming back," Mr Green said.

"It is too risky to go down that path.

"We want competition in Tasmania but not at any cost."

Sourced from The Mercury

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