The arbitrator put an end to the long-running dispute, which occurred amid skyrocketing mainland gas prices, and directed a four-year agreement be made between the two companies.

Negotiations over the contract had been going for more than a year before the pair entered arbitration and formed an interim arrangement for gas customers.

Tasmanian Gas Pipeline chief executive Lindsay Ward said last year Hydro’s refusal to accept terms from the gas transportation company meant the state’s large industrial gas users, like Bell Bay Aluminium, would be hit with 95-per-cent price rises.

Hydro Tasmania chief executive Steve Davy said the arbitrator’s determination, and subsequent contracts, needed to be kept confidential under the National Gas Rules regarding arbitration processes.

“The arbitration has delivered a fair and reasonable deal,” he said.

Tamanian Minerals and Energy Council chief executive Wayne Bould said with arbitration out of the way, the state’s industrial customers could now sit at the bargaining table and negotiate their own wholesale contracts.

He said a four-year term for a contract was adequate but not optimal.

“Industrial customers don’t want short-term contracts that can fluctuate wildly while they compete in the world market,” Mr Bould said.

Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said the deal gave consumers pricing certainty.

“With certainty comes the ability of more businesses to commit to gas as a power source,” she said.

Energy Minister Guy Barnett said the agreement gave the state’s energy security plan more certainty with the ability to fuel the gas-powered Tamar Valley Power Station.

“Gas remains an important energy source for our state, for industry, for small businesses, and also for households,” he said.

Labor’s energy spokesman David O’Byrne said the party welcomed the four-year deal but customers should know the full details.

“It was the government’s secret plans to sell the Tamar Valley Power Station and sever gas contracts that compounded the energy crisis,” he said.

“We can’t afford more secrecy from the Liberals.”