This Statement of Corporate Intent is a requirement of the Annual Report pursuant to section 41 of the Government Business Enterprises Act 1995 and contains information from the Treasurer’s Instructions.
It outlines Hydro Tasmania’s business issues, direction and targets and represents a summary of the Corporate Plan for the next five years.

In recent years our focus has been on preparing the business for entry to the NEM, working with Basslink Pty Ltd on the commissioning of the Basslink electricity cable, and establishing the Roaring 40s renewable energy business and the subsequent joint venture with CLP Group.

In 2006/07, our first full year with physical connection to the NEM, we have been faced with record low inflows which have had a significantly adverse impact on our financial position and storage position and which, as a result, will continue to impact on our financial performance in the medium term, even if inflows return to “average” levels. The 2006/07 inflows were some of the lowest on record and rainfall has been less than average over the past 10-year period. The availability of Basslink has significantly improved our ability to manage the inflow situation, and will play a crucial role in rebuilding the water storages.

Alongside this, we have been concentrating on bedding down our systems and operations to ensure we are able to respond to the challenges and opportunities which come from participating in our new competitive market setting. This included an organisational restructure.

Hydro Tasmania’s objective is to achieve a sustainable commercial rate of return that maximises the value for the State in accordance with its Corporate Plan, while having regard to the economic and social objectives of the State. In achieving this, it is Hydro Tasmania’s charter to prudently grow those areas related to its principal business activities, which will enhance its position locally, nationally and internationally where such growth will add value to both Hydro Tasmania and the State of Tasmania.