Hydro Tasmania has welcomed the completion of APA Group’s purchase of Basslink Pty Ltd (BPL) for $773 million.

As part of the sale transaction, Hydro Tasmania and BPL entered into a network services agreement that commenced on 21 October 2022 and will conclude on the earlier of:

• regulation of Basslink by the AER; or
• 30 June 2025; unless extended by the parties.

The acquisition, announced last week, is a very good result and secures the outcomes from the 2020 Arbitration, which found in favour of the State and Hydro Tasmania. 

As part of this process Hydro Tasmania has recovered outstanding monies awarded to it as costs in the arbitration. In addition, the outstanding legal disputes between BPL, BPL’s lenders and the State and Hydro Tasmania have been resolved by agreement, which includes payment to Hydro Tasmania of an agreed financial settlement in relation to disputed amounts owed to Hydro Tasmania in connection with the Basslink Services Agreement (which was terminated earlier this year). 

APA will also progress technical improvements to Basslink, including implementation of the mitigating actions required by the 2020 Arbitration process.

Hydro Tasmania looks forward to working with APA as they move Basslink to a sustainable footing where it will continue to play an important role in energy security as well as providing trading opportunities for the business.

ENDS.

Released for Hydro Tasmania by Cassandra Leigh / 0409 722 359 / media@hydro.com.au