Green MP claims on Momentum rejected

Hydro Tasmania has rejected claims made by Green MP Kim Booth in relation to its interstate retail business Momentum.

CEO Roy Adair said Mr Booth’s comments showed a lack of understanding of the way the electricity market worked, Hydro Tasmania’s role in that market and how the benefits of the state’s renewable energy advantage flowed back to the Tasmanian community.

He described Mr Booth’s claims of ‘empire building’ as completely unfounded and not reflective of the excellent performance of Hydro Tasmania, which has produced record levels of profit for the benefit of the Tasmanian taxpayer in the last two years.

Mr Booth should be aware that Hydro Tasmania is unable to retail in Tasmania by legislation and that prices in Tasmania are set by regulation, not by Hydro Tasmania.

“Momentum’s success is generating increased earnings for Hydro Tasmania, which are returned to the people of Tasmania through dividends and other payments to the Tasmanian Government,” Mr Adair said. “The success of Momentum will play a significant part in an expected return to the Tasmanian Government of almost $120 million this financial year.”

Mr Adair said Momentum’s SmilePower marketing campaign began operating in March 2011 and had been extremely successful to date. The continued growth of Momentum reduces Hydro Tasmania’s vulnerability to market concentration and hydrological risks and is a sound investment for the state.

The Tasmanian Greens support reaping the benefits of Tasmania’s renewable energy advantage. Momentum’s success is one aspect of this in action, with the benefits flowing back to Tasmania.

Mr Adair said Hydro Tasmania welcomed the energy industry reforms recently announced by the Tasmanian Government. With the introduction of full retail contestability, all Tasmanians will be given access to a range of products being offered in retail markets interstate.

For more information please contact Samantha Meyer on 03 6230 5746.