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Hydro Tasmania returns $122m to the public

Hydro Tasmania has announced it will return a $122 million dividend to the State Government after achieving a $193.7 million pre-tax profit in the 2023-24 financial year.

This strong result comes despite the state-owned company recording the lowest inflows into its hydroelectric dams in 90 years due to drought conditions.

Speaking after the company’s annual report was tabled in parliament today, Acting CEO Erin van Maanen said careful management enabled Hydro Tasmania to perform beyond targets and maintain reliable generation despite the challenging low rainfall.

“Our revenue is highly dependent on how much energy we can generate and that depends on how much it rains, so it was a tough year from that perspective,” van Maanen said.

“But thanks to careful management and planning, we maintained reliable generation and healthy dam levels and ensured we delivered good returns for every drop of water.”

She credited the company’s connection to the National Electricity Market as key to managing water storages profitably.

“We took advantage of market conditions to import energy when prices were low or negative. We either used that energy here, to offset lower rainfall, or we sold it back for a profit when prices peaked.”

van Maanen said Hydro Tasmania continued to prepare for the future, efficiently investing in its fleet to support growing on island demand and help keep power prices as low as possible.

“Our hydro network can’t stand still in time. We’re transforming it to ensure it delivers for Tasmanians today, tomorrow and for generations to come.

“Over the 2023-24 financial year we also progressed proposals for major new developments at Tarraleah and Cethana, and we invested $241 million to maintain and modernise our existing fleet.”

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