Basslink operator to pay Tasmanian Govt $38.5m in compensation for 2015 power crisis

The operators of the Basslink undersea power cable between Tasmania and Victoria have been told to pay the Tasmanian Government almost $40 million in compensation after it failed to prove a major power outage in 2015 was beyond its control.

A failure in the Basslink cable contributed to the Tasmanian energy crisis starting in December 2015, when a major outage put the cable out of operation for almost six months.

Coupled with almost-record low dam reserves, the State Government was forced to ship in 80 diesel generators and fire up the Tamar Valley Power Station to keep the lights on.

The crisis prompted a parliamentary inquiry into how it all happened, with Basslink and Hydro Tasmania — the state-owned electricity company — offering…