![Opposition Leader Bryan Green said Hydro’s unwillingness to extend gas contracts showed the government was “willing to put jobs across Tasmania in jeopardy”. Opposition Leader Bryan Green said Hydro’s unwillingness to extend gas contracts showed the government was “willing to put jobs across Tasmania in jeopardy”.](/images/transform/v1/crop/frm/M9js8ZNF8WfwDLANPpFpug/b1fed28a-1084-4833-ac92-2ccb6d64a618.JPG/r0_0_1200_675_w1200_h678_fmax.jpg)
Bell Bay Aluminium’s Ray Mostogl told a Parliamentary inquiry he was “alarmed” by some decisions made by the state’s energy entities.
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But Energy Minister Matthew Groom refused to preempt any recommendations the Public Accounts Committee would make.
Mr Mostogl, BBA’s general manager, said the energy businesses Hydro Tasmania and Aurora Energy had been “floundering” for the last six years.
Mr Mostogl and Nyrstar’s Greg Zooeff told the inquiry major industrials were not consulted about the state government and Hydro’s decision to decommission the Tamar Valley Power Station’s combined cycle unit.
The inquiry heard the pair did not know about the decision to decommission part of the major industrials’ energy security considerations until they read it in the newspaper.
The government rehired staff at the TVPS late last year and ruled out the sale of the unit following the outage of the Basslink cable.
Mr Mostogl said it was Hydro’s decisions going forward, rather than the energy crisis, that would have the most impact on his business.
“We don’t know what the response will be going forward in terms of not having this crisis happen again but based on track record we are very very nervous that we are going to end up with some legacy or liability that just takes Tasmania further away from being internationally competitive,” Mr Mostogl said.
Tasmanian Gas Pipelines chief executive Lindsay Ward criticised Hydro for failing to engage in good faith negotiations regarding an extension of gas contracts post 2017.
Mr Ward said the company had struggled to understand Hydro’s reluctance to discuss a new contract until it had discovered the company sought to decommission the TVPS’ combined cycle unit.
Hydro chief executive Steve Davy said Hydro was looking to enter into a gas contract with TGP to cover “the next few years” due to a rapidly changing energy market.
Opposition Leader Bryan Green said Hydro’s unwillingness to extend gas contracts showed the government was “willing to put jobs across Tasmania in jeopardy”.
“Basslink going down saved the Minister from a course of action that would have had a devastating impact on Tasmania’s economy,” Mr Green said.
Mr Groom said he would listen to the inquiry’s recommendations and “take this opportunity to reassess Tasmania’s energy security environment”.
Treasurer Peter Gutwein and Mr Groom announced on Thursday evening they would not give evidence to the inquiry as scheduled on Friday.
In a statement they said rescheduling was necessary to “enable arrangements to be put in place to protect the state’s interests in the context of contractual matters related to the Basslink failure”.
Greens leader Cassy O’Connor and Mr Green will give evidence as scheduled when the inquiry continues on Friday.