Keppel Infrastructure's Basslink rejects operational disputes by Hydro Tasmania

Hydro Tasmania claimed that some of Basslink’s facilities did not meet operational requirements.

Basslink, a unit of Keppel Infrastructure Trust (KIT), issued a rejection of the disputes made by Hydro Tasmania saying that Basslink’s facilities do not satisfy some operational requirements based on reports from DNV GL.

Basslink issued Hydro Tasmania a notice of disputes on 14 September 2018 which has since been referred to arbitration on 8 October 2018. On 19 October, Basslink received back a notice of disputes under the Basslink Services Agreement (BSA) from Hydro Tasmania.

“The disputes are all based upon the allegations in the reports Hydro Tasmania's lawyers procured from DNV GL, except the final one which is not dealt with in the DNV GL reports but relates to the content of Basslink's Asset Management Plan and Marine Disaster Recovery Plan,” the company said.

“Basslink has consistently rejected the allegations in the DNV GL reports, which are based on theoretical modelling and not on any testing of the Basslink HVDC cable, as none was undertaken by DNV GL,” it added.

Basslink also argued that an independent project inspector certified that the Basslink Facilities met these operational requirements and signed off on them at the commissioning of the Basslink facilities in 2006.

“On the final matter Hydro Tasmania claims as a dispute, Basslink has advised Hydro Tasmania that the content of Basslink's Asset Management Plan and Marine Disaster Recovery Plan is currently under review but, nonetheless, Hydro Tasmania has pre-emptively chosen to institute a dispute about the content of these Plans prior to Basslink completing its review of those Plans,” it concluded.

KIT owns Basslink, which operates the undersea electricity cable Basslink Interconnector. It supplies energy to Australian state Tasmania as well as Victoria and other southern states during times of peak demand.