Basslink enters voluntary administration

The Basslink subsea cable being lowered into the Bass Strait (administration)

Keppel Infrastructure Trust, owner of Basslink Pty Ltd (BPL) and related entities, has entered voluntary administration. 

In a statement acknowledging the voluntary administration, Hydro Tasmania said that, under the Basslink contracts, there is a framework that enables the Basslink Interconnector to continue to operate through this process. 

“Hydro Tasmania’s energy in storage is at 52.6 per cent, which is a very secure position, well above the High Reliability Level,” the company said in a statement.

Hydro Tasmania recently announced its intention to “progress its legal rights” in relation to the arbitration outcome and subsequent standstill agreement with Basslink Pty Ltd.

Related article: APA Group set to buy Basslink Interconnector

In a statement, Basslink Pty Ltd chief executive Malcolm Eccles said the “difficult decision” followed ongoing disputes with Hydro Tasmania and the unsuccessful sale to APA Group.

Mr Eccles said it was made in the long-term interests of Basslink, employees and creditors.

“Basslink has operated in a highly challenging environment for some time,” he said.

“Given the issues as a result of the cessation of discussions with APA and the ongoing disputes with Hydro Tasmania, it felt that administration was the best way to effect change while protecting all stakeholders.”