Hydro Tasmania has officially terminated the Basslink Services Agreement with Basslink Pty Ltd (BPL).
Concurrent with that termination, Hydro Tasmania made an offer to BPL’s receivers for an interim arrangement under which the key elements of the BSA would be put back in place for one month whilst the parties discuss possible alternative arrangements.
Related article: Basslink enters voluntary administration
“The receivers have declined Hydro Tasmania’s offer,” the company said in a statement.
Hydro Tasmania remains willing to discuss with receivers an alternative commercial arrangement that would provide funding during the receivership and help transition the asset to an alternative commercial model.
As there is no longer a contract in place between Hydro Tasmania and BPL in relation to inter-regional revenues or bidding of the link, Hydro Tasmania no longer has the ability to issue bidding instructions to BPL.
Hydro Tasmania expects the cable will remain in service.
Basslink Pty Ltd announced its voluntary administration in November last year, following arbitration with Hydro Tasmania and the state government.
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Basslink Pty Ltd chief executive Malcolm Eccles said at the time, “Basslink has operated in a highly challenging environment for some time. 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.”