Disputes between Basslink, the state government and Hydro Tasmania over the 2015 cable outage have been resolved.
The undersea power cable failed in December 2015, causing Tasmania to plunge into a power crisis.
The fault took almost six months to repair.
On Thursday, the company said that the arbitrator found in favour of the state government and Hydro Tasmania in the disputes, with damages of $38.5 million awarded.
The disputes relating to the Asset Management Plan and the Marine Disaster Recovery Plan were separately settled.
Basslink chief executive Malcolm Eccles said the organisation would review the rulings and determine next steps.
"We are obviously extremely disappointed with the outcomes," Mr Eccles said.
"We will need some time to review the decisions and consider the implications.
"In the meantime, Basslink continues to operate efficiently and reliably, connecting Tasmania to the national electricity market."
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Energy Minister Guy Barnett said the government had received the arbitrator's decision.
"The details of the award are complex and we are currently working through the arbitrator's award and its implications," Mr Barnett said.
"In respect of the state's dispute with BPL the arbitrator had found the outage was not a force majeure event and the state has been awarded a total of $38.5 million in compensation.
"Importantly, Tasmania's energy position remains secure with water in storage above the prudent storage level."
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