TEMCO and Hydro Tasmania have reached a commercial arrangement for the Bell Bay manganese smelter to reduce its energy load.
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Energy Minister Matthew Groom said Temco would reduce its energy load by about 30megawatts over the next three months, following regular discussions the energy distributor was having with major industrials.
Mr Groom said the load reduction would have no detriment on Temco’s ongoing production or viability.
Energy consultant Marc White said he expected Hydro would hold discussions with a number of major industrial companies about entering into similar arrangements, particularly if there was lower than expected in-flows into dams or efforts to repair the Basslink cable fault took longer than expected.
‘‘Given it’s a commercial arrangement, it’s suited both parties to do that and I think we’ll see more of them,’’ he said.
Mr White said it was positive that Basslink had provided a comprehensive update to the market.
‘‘It’s a complex issue, but they’ve thrown resources at it from day one and have been transparent in outlining the process,’’ he said.
Tasmanian Minerals and Energy Council (TMEC) chief executive Wayne Bould said each major industrial player was dealing directly with their energy supplier in regards to their individual contract.
He said TMEC members had expressed a desire not to be caught unaware by announcements about further delays in fixing the cable.
‘‘They’ve said what steps they’re going to take to fix the cable, but they won’t know until they pull it up what the issue is or how long it could take if something goes wrong,’’ he said.
‘‘If it’s going to take substantially longer, we can work through it, but if there’s a complication, the industrials want the opportunity to sit down with Basslink, Hydro and the government to work through it together.’’