Will Hodgman

Premier of Tasmania



20 November 2017

Guy Barnett, Minister for Energy

Hydro Tasmania commences gas arbitration process

I can advise that Hydro Tasmania is continuing to negotiate an outcome in terms of gas that is in the best interests of all gas users.

To preserve the option and provide certainty while these matters are finalised Hydro Tasmania has completed the steps necessary in order to commence an arbitration process on gas transportation through the Tasmanian Gas Pipeline.

This important step gives wholesale gas customers assurance that either a negotiated outcome or arbitration arrangements will be in place to ensure continuity of supply prior to the expiry of existing contracts.

Commencing the arbitration process does not rule out a negotiated outcome between Hydro Tasmania and TGP. However, commencing arbitration now preserves Hydro Tasmania’s ability to use the process to secure an outcome which is in the best interests of Tasmania, including wholesale gas customers.

The Government understands Hydro Tasmania will continue to engage closely with wholesale gas customers to ensure they are informed of progress and further discussion will occur with these customers this week to provide more information.



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